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Management · Q334

International Finance and Treasury

Graduate and Post Graduate · Management · question 334

Q334

Treasury securities are considered as exempted from

A.
federal taxes
Answer
B.
local and state taxes
C.
federal discounts
D.
deferral premium

Answer: Option A

Solution

Answer: Option A
Solution:
Treasury securities are considered as exempted from federal taxes. The federal income tax is the tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. Federal income taxes are applied to all forms of earnings that make up a taxpayer's taxable income, such as employment earnings or capital gains.