Identify Which of the Following Statements Is True

question 66

Multiple Choice

Identify which of the following statements is true.

• A) 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.
• B) 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.
• C) 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.
• D) All of the above are false.

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Definitions:

Favorable Supply Shock

An unexpected event that increases the availability of a good or service, thus lowering its price and benefiting consumers.

Inflation

The measure of how quickly the general pricing for products and services advances, decreasing monetary purchasing power.

Unemployment Rate

The ratio of individuals without employment, yet are actively pursuing job opportunities in the labor force.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services increase over time.