Study Question of the Week: January 8, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 62, and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6Series 7Series 62, and Series 82)

Which of the following bonds are subject to Federal income tax on the interest they pay?

I. GNMA’s

II. Corporate bonds

III. Commercial paper

IV. Treasury Bills

Answers:

A. I and IV

B. II and IV

C. I, II, and III

D. I, II, III, and IV

 

Correct Answer: D. I, II, III, and IV

Rationale: All of these bonds are subject to Federal income tax. It is only certain types of municipal bonds that are exempt from Federal taxation.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

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