Which One of the Following Statements Is True About Estate

question 18

Multiple Choice

Which one of the following statements is true about estate planning?

• A) Estate planning is only for the rich.
• B) It is always easy to plan for your family's financial security in the event of your death.
• C) Most people provide a lifetime of income for those who will survive them.
• D) Most people give meticulous attention to estate planning.
• E) Many people do little to financially prepare for death.

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Definitions:

Face Value

The nominal or dollar value printed on a bond, share, or other financial instrument, representing its value at issuance.

Bond Premium

The amount by which the market price of a bond exceeds its face value, typically occurring when the bond's interest rate is higher than current market rates.

Fair Value Through Profit

A financial accounting treatment where changes in fair value of assets or liabilities are recorded in the profit or loss for the period.