Final answer:
Progressive Rate Structures are dynamic and change based on the daily balance, with tax or interest rates increasing as the taxable amount or savings balance increases.
Step-by-step explanation:
False: Progressive Rate Structures are not static and do change based on the daily balance.
A progressive tax rate structure implies that the rate of taxation increases as the taxable amount increases. This is commonly seen in income tax systems where higher income earners are taxed at higher rates. The claim that such rate structures are static regardless of the daily balance is incorrect. In reality, these structures are quite dynamic and responsive to the changes in the balance or income of an individual or entity.
For instance, if a bank uses a progressive rate structure for interest on savings accounts, the interest rate applied to an account's balance would vary depending on the amount in the account on a given day. A smaller balance might attract a lower interest rate, whereas a larger balance might qualify for a higher rate, to encourage more savings. It is the variability and responsiveness to changing balances that define progressive rate systems.