Which of the Following Statements About Investment Property Is False

question 12

Multiple Choice

Which of the following statements about investment property is false?

• A)The term securities includes corporate stock,certificates of deposit,notes,bonds,and other debt instruments.
• B)Interest and dividends are taxed at the same rate as long-term capital gain.
• C)Interest on private activity bonds issued by a state or local government is excluded from ordinary income.
• D)A mutual fund is a diversified portfolio of securities owned and managed by a regulated investment company.

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Definitions:

Income Offer Curve

A graphical representation showing how changes in income affect the quantities of goods consumed, holding prices constant.

Prices

The monetary value necessary to acquire a good or service.

Income

Periodic earnings from professional activities or financial investments.

Utility Function

A mathematical representation that defines the satisfaction or utility a consumer derives from consuming different bundles of goods and services.