Economic Rationality Would Argue Against a University Accepting a Split-Interest

question 52

Multiple Choice

Economic rationality would argue against a university accepting a split-interest agreement in which a fixed annuity is payable to the donor if:

• A) The donor has attached conditions to the gift.
• B) The university has no immediate need for the assets.
• C) The sum of future annuity payments plus interest thereon exceeds the fair market value of the assets.
• D) The present value of the future annuity payments and other liabilities exceed the fair market value of the assets.

---

Definitions:

Positron-emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body as an aid to the diagnosis of disease.

Biochemical Activity

The chemical processes and reactions that take place in living organisms.

Electroencephalogram

A test that measures electrical activity in the brain using small, flat metal discs attached to the scalp.

Neural Activity

The functioning of neurons, including the transmission of electrical and chemical signals within the brain and nervous system.