An Innovation That Blurred the Distinction Between Brokerage Firms and Commercial

question 73

Multiple Choice

An innovation that blurred the distinction between brokerage firms and commercial banks was Merrill Lynch's development in 1977 of the

• A)cash management account.
• B)money market mutual fund.
• C)individual retirement account.
• D)discount brokerage.

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Definitions:

Educational Institution

An organization dedicated to education, such as a school, college, university, or training center.

Self-Employed Taxpayers

Individuals who work for themselves and are responsible for paying their own taxes directly to the IRS.

Above-The-Line Deduction

A financial deduction in U.S. income tax that can be taken before the adjusted gross income (AGI) is calculated.

Moving Expense Deduction

A tax deduction that allows individuals to subtract certain moving expenses from their taxable income when relocating for a job or business.