When a Testator Provides for a Bequest of His Gold

question 46

Multiple Choice

When a testator provides for a bequest of his gold watch to his nephew, but the gold watch is not owned by the testator at the time of death: __________.

• A) the nephew is entitled to an equivalent amount of cash.
• B) the executor must purchase a similar gold watch for the nephew if funds are available.
• C) the bequest to the nephew fails by ademption.
• D) all legacies in the estate abate to provide funds to purchase a gold watch for the nephew.

---

Definitions:

Loan Interest

The cost paid by the borrower to the lender for the use of borrowed money, typically expressed as an annual percentage of the loan amount.

Loanable Funds

Refers to the funds available for borrowing in the financial markets, determined by the savings of households and organizations.

Public Debt

The total amount of money owed by the government to creditors, often as a result of borrowing to finance public spending.

Loanable Funds

The market where savers supply funds to borrowers, typically facilitated through financial institutions, influencing interest rates.