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What are the categories of money market mutual funds based on their taxable or tax-exempt status?
  • a)
    U.S. Treasury securities and government-sponsored enterprises
  • b)
    Treasury bills and commercial paper
  • c)
    U.S. government securities and investments in various enterprises
  • d)
    Taxable funds and tax-exempt funds
Correct answer is option 'D'. Can you explain this answer?
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What are the categories of money market mutual funds based on their ta...
The categories of money market mutual funds are based on their taxable or tax-exempt status. Taxable funds invest in securities such as Treasury bills and commercial paper, whose interest income is subject to federal taxation. On the other hand, tax-exempt funds invest exclusively in securities issued by state and local governments, which are exempt from federal taxation. Tax-exempt funds are particularly appealing to investors in higher federal tax brackets who are seeking tax savings on the interest income generated by their portfolios.
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What are the categories of money market mutual funds based on their taxable or tax-exempt status?a)U.S. Treasury securities and government-sponsored enterprisesb)Treasury bills and commercial paperc)U.S. government securities and investments in various enterprisesd)Taxable funds and tax-exempt fundsCorrect answer is option 'D'. Can you explain this answer?
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What are the categories of money market mutual funds based on their taxable or tax-exempt status?a)U.S. Treasury securities and government-sponsored enterprisesb)Treasury bills and commercial paperc)U.S. government securities and investments in various enterprisesd)Taxable funds and tax-exempt fundsCorrect answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What are the categories of money market mutual funds based on their taxable or tax-exempt status?a)U.S. Treasury securities and government-sponsored enterprisesb)Treasury bills and commercial paperc)U.S. government securities and investments in various enterprisesd)Taxable funds and tax-exempt fundsCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are the categories of money market mutual funds based on their taxable or tax-exempt status?a)U.S. Treasury securities and government-sponsored enterprisesb)Treasury bills and commercial paperc)U.S. government securities and investments in various enterprisesd)Taxable funds and tax-exempt fundsCorrect answer is option 'D'. Can you explain this answer?.
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