Bequests Are Normally Not Recorded Until

question 5

Multiple Choice

Bequests are normally not recorded until:

• A) the person making the bequests dies.
• B) 10 years after the death of the person making the bequest after which period of time the other parties interested in the estate cannot legally challenge the bequest.
• C) the beneficiaries of the estate decide to pay out the bequest.
• D)the will has been probated and the time for appeal has passed.

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Definitions:

Excess Reserves

The excess funds that a bank or financial institution maintains beyond the minimum mandated by regulatory bodies, creditors, or its own internal policies.

Money Supply

The total amount of money—cash, coins, and balances in bank accounts—in circulation within a country's economy at a specific time.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand and not lend out, as set by the central bank.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.