A Capital Gain Is the Result Of

question 27

Multiple Choice

A capital gain is the result of:

• A)selling an asset for less than its purchase price.
• B)holding an asset that has depreciated.
• C)selling an asset at its purchase price.
• D)selling an asset for more than its purchase price.
• E)buying a new asset at a rate lower than the market rate of the asset.

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Definitions:

Gold Coins

Coins made primarily or entirely of gold and used historically as currency, and today often collected as investments or keepsakes.

Small Denomination Time Deposits

Fixed-term deposit accounts offered by banks that have a lower minimum deposit requirement and are usually associated with lower interest rates.

Large Denomination Time Deposits

Savings accounts or certificates of deposit in large amounts, usually over $100,000, that earn interest over a fixed period of time.

M2

An assessment of the total amount of money in circulation, encompassing physical currency, deposits in checking accounts, and liquid assets like savings accounts and money market instruments.