If You Hold Mutual Fund Shares in Your Roth Individual

question 20

Multiple Choice

If you hold mutual fund shares in your Roth individual retirement account, the taxes on reinvested income will be

• A) Deferred.
• B) Eliminated.
• C) Evaluated.
• D) Payable immediately.
• E) None of these.

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Definitions:

Hydrobromic Acid

A strong acid formed by dissolving the diatomic molecule hydrogen bromide (HBr) in water.

Strong Acid

An acid that completely dissociates into its ions in water, releasing all of its hydrogen atoms as hydrogen ions.

Acidity

A measure of the ability of a solution to donate hydrogen ions (H+) and thereby lower its pH.