Which of the following is True regarding tax-advantaged assets?
A) They are typically subject to excise taxes to account for their low explicit taxes.
B) A corporate bond is typically considered a tax-advantaged asset.
C) They are often subject to implicit taxes.
D) A corporate bond is typically considered a tax-advantaged asset and They are often subject to implicit taxes are correct but not They are typically subject to excise taxes to account for their low explicit taxes.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Tax-advantaged assets are investments that offer tax benefits or are taxed at a lower rate than other types of assets. They are often subject to implicit taxes, such as the opportunity cost of tying up money in a tax-advantaged account. Option A is incorrect as there are no excise taxes associated with low explicit taxes in tax-advantaged assets. Option B is incorrect as corporate bonds are generally not considered tax-advantaged assets.

Which of the Following Is True Regarding Tax-Advantaged Assets