With a traditional IRA and earned income below federally determined limits, the annual contributions
A)
are taxed, but the interest on the fund accumulates tax free.
B)
reduce your taxes, but the interest income on the IRA is taxed in the year it is earned.
C)
reduce your taxable income. The funds in the IRA and the return on the IRA are not taxed until the funds are disbursed in your retirement years.
D)
are taxed once when they are placed in the IRA and again when they are disbursed from the IRA.
Question 2
You purchased 100 shares of KLM at 60 a share by depositing the minimum amount of margin. If the initial margin requirement was 50 and the maintenance margin requirement is 30, you will get a margin call if KLM's price falls to
A)
18.
B)
20.
C)
43.
D)
40.
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