A forty-five year old investor has been laid off from his job. In order to pay bills he takes a premature distribution from his traditional IRA account. What tax penalties, if any, will he face?
A. None. Distributions during times of unemployment are not penalized.
B. None. Distributions before the age of 59 ½ are penalty-free.
C. He will be required to pay a 10% tax penalty on the amount withdrawn.
D. Since traditional IRA's are often tax deductible, the client owes the normal taxes they avoided when they made their contribution.
Ans: C. He will be required to pay a 10% tax penalty on the amount withdrawn.
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Identical products sold in different countries must sell for the same price in competitive markets when their price is expressed in terms of the same currency. This is called the law of _____ _____.
Fill in the blank(s) with the appropriate word(s).
Which of the following is NOT true regarding behavioral observations of firms making a decision to invest internationally?
A) MNEs initially invest in countries with a similar "national psychic." B) Firms eventually take greater risks in terms of the national psychic of countries in which they invest. C) Initial investments tend to be much larger than subsequent ones. D) All of the above have been observed.