Refer to the payoff table. Using the maximin criterion, what would be the highest expected payoff?

When the Federal Reserve purchases bonds from dealers, this:

a) adds liquidity to the financial system and ultimately results in the inter-bank interest rate rising b) subtracts liquidity from the financial system and ultimately results in the inter-bank interest rate rising c) subtracts liquidity from the financial system and ultimately results in the inter-bank interest rate falling d) adds liquidity to the financial system and ultimately results in the inter-bank interest rate falling

Johnson worked for ABC Co. and earned a salary of $100,000. Johnson also received, as a fringe benefit, group term life insurance at twice Johnson's salary. The annual IRS-established uniform cost of insurance is $2.76 per $1,000. What amount must Johnson include in gross income?

a) $100,414 b) $100,000 c) $100,552 d) $100,276