Identify Which of the Following Statements Is True

question 79

Multiple Choice

Identify which of the following statements is true.

• A) Special powers of appointment give the power holder less restricted powers than a general power of appointment.
• B) If spouses are the only joint owners, only one- half of the value of the jointly owned property is included in the gross estate, regardless of the relative amount of consideration provided by either spouse.
• C) The gross estate does not include the value of life insurance policies on the decedent if the proceeds are receivable by the executor or for the benefit of the estate.
• D) All of the above are false.

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Definitions:

Risk Exposure

Risk exposure is the measure of potential future losses that may result from business activities or investment decisions, due to risks that have been taken.

Variable-Rate Loan

A loan in which the interest rate can change over time, based on an underlying benchmark interest rate or index.

Interest Rate Cap

A financial derivative contract that limits the maximum interest rate a borrower has to pay on a variable-rate loan.

Futures Contracts

Standardized agreements to buy or sell a commodity or financial asset at a future date and price.