You Are Examining Two Different MMMFs

question 81

Multiple Choice

You are examining two different MMMFs.Fund A is tax-exempt and pays 7%.Fund B is taxable and pays 9.5%.You live in a state that imposes no income taxes and you are in the 25% federal tax bracket.Which of these two alternatives is better?

• A)Find A is the better choice.
• B)Fund B is the better choice.
• C)Fund A and Fund B are equal so they both are a wise choice.
• D)Neither Fund A nor Fund B are wise choices.

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Definitions:

Complaints

Formal expressions of dissatisfaction or allegations against someone or something.

Proceed

To proceed means to move forward or continue with an action or process after a pause or interruption.

Legal Aid

A service designed to provide free or low-cost legal assistance to those unable to afford legal representation.

Yearly Return

The amount of profit or loss realized from an investment over a one year period, usually expressed as a percentage.