Which of the Following Statements Are TRUE

question 111

Multiple Choice

Which of the following statements are TRUE?

• A)An increase in tax rates will increase the demand for Treasury bonds,lowering their interest rates.
• B)Because the tax-exempt status of municipal bonds was of little benefit to bond holders when tax rates were low,they had higher interest rates than U.S. government bonds before World War II.
• C)Interest rates on municipal bonds will be higher than comparable bonds without the tax exemption.
• D)Because coupon payments on municipal bonds are exempt from federal income tax,the expected after-tax return on them will be higher for individuals in lower income tax brackets.

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Definitions:

Competitive Forces

The external factors that affect a company's capability to compete in a market, including competitors, new entrants, substitute products, bargaining power of buyers, and suppliers.

Future Changes

Anticipated modifications or developments in a particular area or field over an upcoming period.

Standards of the Industry

Refers to the commonly accepted criteria, techniques, and practices that are used in a specific sector or industry.

M'Naghten Standard

A legal principle used to evaluate the criminal liability of a defendant based on the understanding of right and wrong at the time of the crime.