Banker: By transferring income to a retirement account at our bank, people can save money by delaying payment of taxes. Accountant: That plan won’t actually save money because the taxes will have to be paid sometime in the future when the money is withdrawn. Which one of the following best explains the conflict between the Banker and the Accountant? (Answer the question after reading the following paragraph.)

Direction: Read the following short passages and answer the questions that follow each passage.

Option A: The Banker is primarily concerned with recruiting new customers for the bank but the Accountant is not.

Option B: The Accountant misunderstands the application of the tax laws.

Option C: The Banker and the Accountant disagree on the application of the term “save”.

Option D: Retirement accounts are nothing more than a tax shelter, which the Parliament intends to cut out of next year’s tax amendment.

Correct Answer

Option: c

Explanation

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