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If an Investor Uses a Reinvestment Plan to Invest Income

Question 96

Multiple Choice

If an investor uses a reinvestment plan to invest income dividends and capital-gain distributions:


A) then both the income dividends and capital-gain distributions are tax-exempt.
B) only the income dividends are tax-exempt.
C) only the capital-gain distributions are tax-exempt.
D) both the income dividends and capital-gain distributions are currently taxable.
E) then both the income dividends and capital-gain distributions will be tax-deferred.

Correct Answer:

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