9
QuizMultiple Choice

Investing — Test

Question 9 • Personal Finance

How do taxes affect investment returns?

Answer
A
Guarantee growth
B
Eliminate losses
C
Increase returns
D
Reduce final amount

Explanation

Taxes take a portion of investment earnings, leaving less money to keep and reinvest. This reduces the amount an investor ends up with, so the correct choice is D, “Reduce final amount.” Taxes do not guarantee growth or eliminate investment losses.

AI-written and checked against the verified answer.

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