Which One of the Following Is a General Characteristic of a Tax-Managed

question 7

Multiple Choice

Which one of the following is a general characteristic of a tax-managed fund?

• A)low turnover rate
• B)concentration on income-producing securities
• C)high level of realized capital gains
• D)higher trading costs than average funds
• E)matching of dividend income to capital gains

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Definitions:

Economic Fluctuations

The rise and fall of economic activity relative to the long-term growth trend of the economy; also called business cycles

World Economy

The global network of economic activities, trade, and financial systems that transcend national borders, facilitating international cooperation and competition.

Government Stabilize

Refers to actions taken by the government to reduce economic fluctuations and maintain economic stability.

Socio-political Condition

The combined social and political factors and environments that affect the functioning and governance of a society.