A Tax-Exempt Money Market Fund Has an Annual Return of 3.76

question 50

Multiple Choice

A tax-exempt money market fund has an annual return of 3.76%. What is your equivalent taxable rate if you are in a 28% marginal tax bracket?

• A)3.15%
• B)3.38%
• C)5.22%
• D)6.11%
• E)6.81%

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Definitions:

Subduction Zone

A region where one tectonic plate slides underneath another, often leading to volcanic activity and earthquakes.

Volcanoes

Openings in the Earth's crust through which molten rock, ash, and gases are ejected.

Plate Tectonics

A scientific theory explaining the movement of the Earth's lithosphere, which is divided into tectonic plates, over the more fluid asthenosphere.

Asthenosphere

The highly viscous, mechanically weak, and ductilely-deforming region of the upper mantle of the Earth, which lies just below the lithosphere.