SIE Exam Practice Question 100
Question: 100
Which of the following investments would be most suitable for an investor in a high tax bracket who wants to avoid paying any taxes on his investments?
Correct Answer: B
Explanation:
A municipal bond would be the most suitable investment for an investor in a high tax bracket who wants to avoid paying any taxes on his investments. Municipal bonds are tax-exempt, so investors do not have to pay taxes on the interest from the bonds. By contrast, investors do have to pay taxes on the interest from corporate bonds, mutual funds, and preferred stocks.
More Tests
- SIE Exam Practice Test 1
- SIE Exam Practice Test 2
- SIE Exam Practice Test 3
- SIE Exam Practice Test 4
- SIE Exam Practice Test 5
- SIE Exam Practice Test 6
- SIE Exam Practice Test 7
- SIE Exam Practice Test 8
- SIE Exam Practice Test 9
- SIE Exam Practice Test 10
- SIE Exam Practice Test 11
- SIE Exam Practice Test 12
- SIE Exam Practice Test 13
- SIE Exam Practice Test 14
- SIE Exam Practice Test 15
- SIE Exam Practice Test 16
- SIE Exam Practice Test 17
- SIE Exam Practice Test 18
- SIE Exam Practice Test 19
- SIE Exam Practice Test 20