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:

Body Fluids

Liquids within the human body that support its normal functions, including blood, saliva, and urine.

Kidneys

Organs that filter waste products from the blood and excrete them in the form of urine.

Capsule

In biology, a tough sheath or membrane that encloses some structures; in medicine, a small case or container that encloses a dose of medication.

Kidney

A pair of organs in the human body that are essential for removing waste products from the blood and regulating blood pressure, electrolyte balance, and red blood cell production.