Investment interest expense does not include:
A) interest expense from loans to purchase U.S. savings bonds and interest expense from loans to purchase corporate bonds.
B) interest expense from loans to purchase stocks.
C) interest expense from loans to purchase municipal bonds.
D) interest expense from loans to purchase corporate bonds and interest expense from loans to purchase stocks.
E) interest expense from loans to purchase corporate bonds.

Question

Quizplus · Accepted Answer

Investment interest expense includes interest expense from loans to purchase U.S. savings bonds, corporate bonds, and stocks. However, interest expense from loans to purchase municipal bonds is not included in investment interest expense. Therefore, Option C is the correct choice.

Investment Interest Expense Does Not Include