Identify Which of the Following Statements Is True

question 60

Multiple Choice

Identify which of the following statements is true.

• A)An individual who is physically present in a foreign country for 330 full days out of a 12-month period can claim the foreign-earned income exclusion only for the days in the 12-month period he/she is physically present in a foreign country.
• B)An individual, who is a bona fide resident of a foreign country for at least one full tax year, can claim the foreign-earned income exclusion for all days on which he/she is a resident of the foreign country and physically present in that country.
• C)Fringe benefits that are excluded from gross income under a Code Section other than Sec. 911 reduce the annual dollar ceiling for the foreign income exclusion.
• D)All of the above are false.

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Definitions:

Federal Reserve System

The central banking system of the United States, responsible for monetary policy.

Issuing Federal Reserve Notes

The process by which the Federal Reserve, the central banking system of the United States, distributes its official currency.

Money Market Mutual Funds

Investment funds that pool money from investors to purchase short-term, high-quality debt securities as a way to offer returns with minimal risk.

Bank Deposit Rates

The interest rate paid by banks to depositors for keeping their money in savings accounts, fixed deposits, or other types of deposit accounts.