Income Distributed by a Mutual Fund from Which One of the Following

question 84

Multiple Choice

Income distributed by a mutual fund from which one of the following sources receives a preferential tax rate of 15%?

• A) dividends on common stock
• B) interest on bonds
• C) dividends from most preferred stocks
• D) dividends from REITs

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Definitions:

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Cable Television

A system that delivers television programming through coaxial or fiber-optic cables directly to viewers.

Lump-Sum Payment

A one-time payment made for a particular item or service, rather than payments spread over time.