Statement I: Events Well Beyond the Control of the Federal

question 345

Multiple Choice

Statement I: Events well beyond the control of the federal government make it impossible to balance the budget every year.
Statement II: In 1997 Congress passed a balanced budget amendment and this measure is now before the state legislatures.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Probate

The legal process of administering the estate of a deceased person, resolving all claims, and distributing the deceased person's property under a will.

Testamentary Trust

A trust that is created according to the instructions in a person’s will to manage assets for beneficiaries after the person's death.

Charitable Trust

A trust created to benefit a particular charity or the public in general, typically for educational, religious, scientific, or other charitable purposes.

Cy Pres Trust

A legal principle allowing courts to modify charitable trusts or gifts to closely match the donor's intent if the original purpose becomes impracticable or impossible to achieve.