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:

Boreal Forests

Boreal forests, also known as taiga, are dense forests located in high northern latitudes, characterized by cold climates and coniferous trees.

Commercial Logging

The practice of cutting down trees for sale as timber or pulp, often associated with the timber industry.

Slash-And-Burn Agriculture

A type of agriculture in which tropical rain forest is cut down, allowed to dry, and burned. The crops that are planted immediately afterward thrive because the ashes provide nutrients; in a few years, however, the soil is depleted and the land must be abandoned.

Greenhouse Gas

Gases in Earth's atmosphere that trap heat, such as carbon dioxide, methane, and nitrous oxide, contributing to global warming.