You Are Examining Two Different MMMfs

question 78

Multiple Choice

You are examining two different MMMfs. Fund A is tax-exempt and pays 7%. Fund B is taxable and pays 9.5%. You live in a state that imposes no income taxes and you are in the 25% federal tax bracket. Which of these two alternatives is better?

• A) Find A is the better choice.
• B) Fund B is the better choice.
• C) Fund A and Fund B are equal so they both are a wise choice.
• D) Neither Fund A nor Fund B are wise choices.

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Definitions:

Specific Assumptions

Specific Assumptions are explicit beliefs or statements taken as true within a particular context or model, serving as a foundation for reasoning or decision-making.

Absolute Assumptions

Premises considered to be universally true without any need for proof, often used as foundational concepts in philosophy or logic.

Eating Pattern

The habitual dietary habits, choices, and behaviors of an individual or group.

Modeling

A method used in psychology and education where individuals learn through observation and imitation of others' behaviors, attitudes, or emotional expressions.