The wealthy can make tax-free investments that are not available to those who are less well off.The income from ________ ,sold in denominations of $5,000,does not have to be reported on tax returns.

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Quizplus · Accepted Answer

Municipal bonds are tax-exempt investments, meaning that the income they generate is not subject to federal income taxes. This benefit is only available to investors in higher tax brackets, making it an investment option mainly for the wealthy. Treasury bills and U.S. savings bonds may be tax-deferred, but they are not tax-free investments. Stocks also generate taxable income in the form of dividends and capital gains.

The Wealthy Can Make Tax-Free Investments That Are Not Available