Opal Earned 6% in Her Savings Account

question 32

Multiple Choice

Opal earned 6% in her savings account.If she is in the 25% tax bracket,what is her after-tax savings rate of return?

• A) 2%
• B) 2.5%
• C) 4.5%
• D) 5%
• E) 25%

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Definitions:

Continuous Auction Market

A continuous auction market is a type of financial market in which buy and sell orders are continuously matched throughout the trading day, allowing for instant trade execution.

Private Placements

Securities sold directly to a small number of private investors, rather than through a public offering.

SEC Rule 144A

This SEC rule provides a regulatory framework that allows the sale of privately placed securities to qualified institutional buyers without the need for public registration.

Circuit Breakers

Mechanisms used in stock exchanges to temporarily halt trading on an exchange to curb panic-selling, triggered by drastic drops in value.