Identify Which of the Following Statements Is False

question 55

Multiple Choice

Identify which of the following statements is false.

• A) Taxable pensions and annuities are excluded from the definition of earned income when computing the foreign- earned income exclusion.
• B) An individual meets the bona fide resident test by establishing a home in a foreign country for 330 days.
• C) Earned income is excludable from gross income only if it is foreign- source income.
• D) All of the above are false.

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Definitions:

Foreign-Currency Exchange

The marketplace where currencies are traded and their exchange rates are determined.

Net Capital Outflow

The distinction in investment behaviors where local residents invest in foreign properties versus foreigners investing in local properties.

Open-Economy Macroeconomic Model

A model that analyzes an economy that engages in international exchange of goods, services, and capital.

Loanable Funds

The market where savers supply funds for loans to borrowers, typically reflected by interest rates.