Which of the Following Statements Is False

question 63

Multiple Choice

Which of the following statements is false?

• A) Unlike taxes on capital gains or interest income, which are paid annually, taxes on dividends are paid only at the time the investor sells the stock.
• B) Deferring the payment of capital gains taxes lowers the present value of the taxes, which can be interpreted as a lower effective capital gains tax rate.
• C) Investors with longer holding periods or with accrued losses face a lower tax rate on equity income, decreasing the effective tax advantage of debt.
• D) Investors with accrued losses that they can use to offset gains face a zero effective capital gains tax rate.

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Definitions:

Bribes

Payments made to influence someone's decisions or actions in favor of the payer, typically considered illegal or unethical.

Rent Control

A government policy that sets a maximum price (a rent ceiling) landlords can charge tenants, intended to make housing more affordable.

Landlords

Property owners who rent out real estate to tenants for a periodic payment, usually monthly.

Quality of Housing

A measure of the condition, facilities, and attributes of housing units, which affects the well-being and satisfaction of residents.