The difference between the BTRORs of fully-taxable and tax-favored investments is called
A)an explicit tax.
B)an implicit tax.
C)an effective tax.
D)a marginal tax.

Question

Quizplus · Accepted Answer

The difference between the BTRORs of fully-taxable and tax-favored investments is called an implicit tax. This represents the tax cost of investing in a taxable investment instead of a tax-favored investment.

The Difference Between the BTRORs of Fully-Taxable and Tax-Favored Investments