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Tax-Exempt Interest on State and Local Private Activity Bonds (Issued

question 85

True/False

Tax-exempt interest on state and local private activity bonds (issued in 2010) is a tax preference item.


Definitions:

English Auction

A type of auction in which the price ascends as participants sequentially bid higher prices until only one bidder remains, who wins the item.

Reserve Price

This is the minimum price a seller is willing to accept for an item in an auction.

Profit-Maximizing

A strategy or process aimed at increasing a company's profits to the highest possible level.

Vickrey Auction

A type of sealed-bid auction where the highest bidder wins but pays the price offered by the second-highest bid.

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