Question
Dividend reinvestment plans tend to be chosen by individuals whose primary goal is to a. avoid Social Security taxes. b. chose tax-exempt assets. c. provide
Dividend reinvestment plans tend to be chosen by individuals whose primary goal is to
a. | avoid Social Security taxes. | |
b. | chose tax-exempt assets. | |
c. | provide a source of current income. | |
d. | build wealth. | |
e. | diversify their portfolio. |
Suppose that an investor is willing to tolerate relatively higher asset price risk or volatility in order to seek relatively higher average annual rates of return mainly through capital gains over a long-term time horizon. Then the investor should seek a __________ mutual fund, generally made up of stocks of ________ firms.
a. | growth; large-cap | |
b. | growth; small-cap | |
c. | income; large-cap | |
d. | income; small-cap | |
e. | balanced; government |
For eligible individuals, Classic IRAs are
a. | tax deferred, taxed on the contributions but tax deductible upon withdrawal. | |
b. | tax deferred, tax deductible on the contributions but taxed upon withdrawal. | |
c. | tax exempt on the contributions, but taxed on the withdrawals. | |
d. | taxed on the contributions, but tax exempt on the withdrawals. | |
e. | tax exempt on the contributions and the withdrawals. |
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