Index Funds Offer Tax Advantages Because

question 10

Multiple Choice

Index funds offer tax advantages because

• A)they trade frequently,generating frequent capital gains.
• B)they generate less capital gains through trades.
• C)they have higher MERs which reduces taxable distributions.
• D)they do not receive dividends or interest.

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Definitions:

Eye Movements

The movement of the eyes that enables visual tracking and scanning of the environment.

Sucking Behaviors

Reflexive actions in infants for nutrition and comfort, which are essential for feeding from birth.

Habituation Studies

Research methods used to study how repeated exposure to a stimulus reduces the response of an individual over time.

Heart Rate

The number of heartbeats per unit of time, typically expressed in beats per minute (bpm), indicating the heart's efficiency and often influenced by physical activity, stress, and health status.