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.

---

Definitions:

AVC Curve

A graph representing the Average Variable Cost of producing different quantities of output, typically showing how AVC decreases and then increases.

Market Demand

The overall sum of a particular good or service that every customer in a market is eager and able to acquire at a range of prices.

Equilibrium Price

The market price at which the quantity demanded equals the quantity supplied, leading to market equilibrium.

Purely Competitive Market

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price-taking behavior.