If a Mutual Fund Distributes at Least ____ Percent of Its

question 55

Multiple Choice

If a mutual fund distributes at least ____ percent of its taxable income to shareholders, the fund is exempt from taxes on dividends, interest, and capital gains distributed to shareholders.

• A)​25
• B)​50
• C)​75
• D)​90

---

Definitions:

Quantity Sold

The total number of units of a product or service purchased by consumers over a specific period.

Price Ceiling

A legally established maximum price that can be charged for a good or service, aimed at preventing prices from rising too high.

Creates Shortage

A market condition where the quantity demanded exceeds the quantity supplied at a given price, often due to price controls like price ceilings.

Price Floor

A government-imposed minimum price level for a particular commodity or service, aimed at protecting producers.