Regardless of Whether a Tax Is Levied on Sellers or Buyers

question 73

True/False

Regardless of whether a tax is levied on sellers or buyers, taxes discourage market activity.

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Definitions:

ETFs

Exchange-Traded Funds, investment funds traded on stock exchanges, much like stocks, which hold assets such as stocks, commodities, or bonds.

International Funds

Mutual funds that invest in a variety of securities from markets outside of the investor’s country of residence, aiming to diversify investment risk.

Foreign Stocks

Stocks issued by companies incorporated outside the investor's country of residence, providing diversification and exposure to foreign markets.

Diversified Portfolio

An investment strategy that involves spreading investments across various asset classes to reduce risk.