Which of the Following Is Not a Tax Advantage of a Series

question 49

Multiple Choice

Which of the following is not a tax advantage of a Series EE Saving Bond?

• A) taxes are paid as the original issue discount on the bond is amortized
• B) interest earned is exempt from state taxation
• C) taxes are deferred until the bond is cashed in at maturity
• D) interest is exempt from federal taxation when used for qualifying educational expenses
• E) None of these

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Definitions:

Real Assets

Physical or tangible assets that have intrinsic value, such as real estate, commodities, or natural resources.

Coincidence of Wants

A situation in barter economies where two parties each possess an item the other wants, allowing for a direct exchange without the need for a medium of exchange like money.

Barter

The direct exchange of one good or service for another good or service.

Barter

A system of exchange where goods or services are traded directly for other goods or services without the use of money.