Tia Funds an Irrevocable Trust with $100,000, Naming Vonda to Receive

question 72

Multiple Choice

Tia funds an irrevocable trust with $100,000, naming Vonda to receive income for life. Tia also grants Vonda a general power of appointment during her life. During the next year, Vonda directs the trustee to give $100,000 to Rick. Which of the following statements is not correct?

• A)Tia made a $100,000 gift to Rick.
• B)Vonda makes a $100,000 gift to Rick.
• C)Tia has made a gift of $100,000 to Vonda.
• D)Exercising a general power of appointment constitutes a gift.

Identify different types of money, including commodity money, fiat money, and legal tender.

Explain the concept of fractional reserve banking and its impact on the banking system.

Recognize the historical development of money and banking, including the role of early bankers.

Analyze the role of financial institutions as intermediaries between savers and borrowers.

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Definitions:

Recall

The cognitive process of retrieving information or memories from one's past experiences.

Momentary Sensory Memory

A type of memory that holds information from the sensory system for a very brief period, often only fractions of a second.

Iconic Memory

A type of visual sensory memory that holds an image of a visual stimulus for a brief moment after the stimulus has disappeared.

Visual Stimuli

External prompts that are seen by the eye and can influence the viewer's behavior or psychological state.