Which of the Following Statements About IRAs Is False

question 43

Multiple Choice

Which of the following statements about IRAs is false?

• A)annual contributions made to the account are tax-deductible up to certain amounts
• B)they earn tax-deferred investment income
• C)only people in certain income categories can make deductible IRA contributions
• D)the maximum annual deductible contribution is $4,000 per person

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Definitions:

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamental analysis, regardless of its current market value.

Par Value

The face value of a bond or the stock value stated in the corporate charter.

Callable

Refers to a type of financial security, such as a bond, that can be redeemed or "called" by the issuer before its maturity date, usually at a specified call price.

Yield To Call

The rate of return anticipated on a bond if it is held until the call date, considering both the interest payments received and the capital gain or loss upon redemption.