Which of the Following Statements About Investment Property Is False

question 12

Multiple Choice

Which of the following statements about investment property is false?

• A)The term securities includes corporate stock,certificates of deposit,notes,bonds,and other debt instruments.
• B)Interest and dividends are taxed at the same rate as long-term capital gain.
• C)Interest on private activity bonds issued by a state or local government is excluded from ordinary income.
• D)A mutual fund is a diversified portfolio of securities owned and managed by a regulated investment company.

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum combination of two goods that can be produced with available resources and technology.

Consumer Goods

Products that are purchased for consumption by the average consumer, including items such as food, clothing, and household products.

Military Goods

Products and services specifically designed, manufactured, and supplied to armed forces, including weapons, equipment, and military technology.

Economic Growth

An increase in the production of goods and services in an economy over a period of time.