Anita,who Is Divorced,maintains a Home in Which She and Her

question 45

Multiple Choice

Anita,who is divorced,maintains a home in which she and her 16-year-old daughter live.Anita provides the majority of the support for her daughter and for a son,age 23,who is enrolled part-time at the university and lives in the dorm.The son also works in the campus bookstore and earns spending money of $4,500.Which of the following statements is correct regarding the number of dependents Anita can claim?

• A)Anita can claim her daughter,but not her son,as a dependent.
• B)Anita can claim her son,but not her daughter,as a dependent.
• C)Both the son and daughter qualify as Anita's dependents.
• D)Neither the daughter nor the son qualify as Anita's dependent.

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Definitions:

Actively Managed

Refers to investment funds where portfolio managers make specific investments with the goal of outperforming an investment benchmark index.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are managed by professional investment managers.

Index Funds

Index Funds are mutual funds or exchange-traded funds (ETFs) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.

Efficient Markets Hypothesis

The Efficient Markets Hypothesis suggests that asset prices in financial markets fully reflect all available information at any given time, making it impossible to consistently achieve higher returns than the overall market.