Match the Definition with the Correct Term

question 12

Multiple Choice

Match the definition with the correct term.
-Activity that creates the potential for effectively connected income.

• A)Expatriate
• B)Resident
• C)Nonresident alien
• D)U.S. trade or business
• E)Effectively connected income

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Definitions:

Wilshire 5000

A stock market index designed to measure the performance of all U.S.-headquartered equity securities with readily available price data.

NAV

Stands for Net Asset Value, which is the value per share of a mutual fund or ETF calculated by dividing the total value of all the securities in the portfolio by the number of shares outstanding.

Income Distributions

Payments made from a fund or account to investors, which can include dividends from stocks or interest from bonds.

Capital Gain Distributions

The payment of proceeds prompted by an investment fund's sale of stocks and securities, which are passed on to the fund's investors.