Which of the Following Is a True Statement About the Federal

question 49

Multiple Choice

Which of the following is a true statement about the federal gift tax return (Form 709) ?

• A)Form 709 is due by the 15 ^th day of the ninth month following the date of the gift.
• B)Form 709 must be filed if a taxpayer wishes to elect gift-splitting.
• C)Form 709 need not be filed unless a taxpayer's taxable gifts exceed the exemption equivalent.
• D)Form 709 is due nine months after the death of the decedent.
• E)None of the choices are true.

---

Definitions:

Loanable Funds

The money available for borrowing, which includes savings that are available for investment and loans.

Random Walk

A theory suggesting that stock market prices follow a random path, making it impossible to predict future price directions based on past information.

Efficient Markets Hypothesis

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Financial Risk

The possibility of losing money on an investment or business venture due to various factors including market fluctuations, interest rate changes, and credit risk.