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FINRA Series 7

Category - Series 7

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If federal excise taxes were increased by the government, what would the typical investor do about his securities portfolio?

sell treasuries and invest in municipal bonds
sell corporate bonds and invest in treasuries
sell municipal bonds and invest in high quality growth stocks
take no action as a result of the tax increase

Explanation

Answer: D - take no action as a result of the tax increase. Excise taxes normally are not important to the typical investor. They generally have little relative effect on securities prices.

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FINRA Series 7

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FINRA Series 7

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