Which Is an Advantage of Investing in Series EE U

question 94

Multiple Choice

Which is an advantage of investing in Series EE U.S. Savings Bonds?

• A) When a bond is cashed, the earned interest is exempt from federal income taxes.
• B) Interest is not taxed by the federal government until the bond is cashed.
• C) The interest rate on the bond is adjusted to keep up with inflation.
• D) Series EE Bonds can be sold at a profit on the open bond market.
• E) The rates on Series EE Bonds are usually higher than the rates offered on stocks or corporate bonds.

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Definitions:

Lorenz Curves

A graphical representation used in economics to show the distribution of income or wealth within a population, indicating inequality.

Relative Distribution

A measure of how income or wealth is shared among individuals or groups within a society.

Income

A flow of money to households.

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of the population living in poverty.