18
QuizMultiple Choice

Principles of Investment

Question 18 • SNHS NV-Civics and Economics

Taxes are often owed on

Answer
A
initial investments.
B
the current value of investments.
C
the real value of investments.
D
investment returns.

Explanation

Taxes are generally owed on income or gains an investment produces, such as interest, dividends, or profit when an investment is sold. The initial amount invested and an investment’s changing value alone are not usually taxed as investment income. Therefore, the correct choice is investment returns.

AI-written and checked against the verified answer.

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