If Your Broker Tells You That a Trust to Which

question 37

Multiple Choice

If your broker tells you that a trust to which you are a beneficiary has changed and instead of getting $5000 per year starting next year you will be getting $4000 per year starting next year, the present value to you has

• A)fallen.
• B)risen.
• C)remained unchanged.
• D)necessarily become more predictable.

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Definitions:

Checks and Balances

A system within a government that ensures no single branch becomes too powerful by providing each branch the authority to limit the powers of the others.

Republicanism

A political ideology that values the principles of a republic, emphasizing civic virtue, liberty, and resistance to corruption and monarchy.

Common Sense

Practical judgment concerning everyday matters, or a basic ability to perceive, understand, and judge in a manner that is shared by (common to) nearly all people.

Declaration of Independence

A foundational document declaring the thirteen American colonies' independence from British rule, adopted on July 4, 1776.