Which of the Following Mutual Funds Has a Tax Advantage

question 30

Multiple Choice

Which of the following mutual funds has a tax advantage?

• A)Balanced funds.
• B)Pension funds.
• C)Bond funds.
• D)Funds that invest in foreign countries.

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Definitions:

Acquisition of New Securities

The process by which a company or individual buys new stocks, bonds, or other forms of investment securities to add to their portfolio.

Early Retirement

A process where employees opt to retire before the traditional retirement age, often with specific incentives offered by employers.

Available-For-Sale Investment

A classification for investments in securities that are not classified as held-to-maturity or trading securities, with changes in their value recorded in other comprehensive income.

Equity-Method Income

Income recognized by an investor from its investment in another entity, equivalent to the investor's share of the investee's net income.