"Gains Trading" Involves

question 35

Multiple Choice

"Gains trading" involves

• A) Reporting investment securities at fair value but liabilities at amortized cost
• B) Selling securities whose value has increased since acquisition (winners) while holding those whose value has decreased since acquisition (losers)
• C) Moving securities whose value has decreased since acquisition from available-for-sale to held-to-maturity in order to avoid reporting losses
• D) All of the above are considered methods of "gains trading"

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Definitions:

Buyers

Individuals or entities that exchange money for goods and services.

Sellers

Individuals or entities that offer goods or services to buyers in exchange for payment.

Per-Unit Tax

A tax that is charged on each unit of a good or service that is sold.

Tax Burden

The measurement of the total level of taxes imposed on individuals or businesses by a government, often expressed as a percentage of income or GDP.