Identify Which of the Following Statements Is True

question 63

Multiple Choice

Identify which of the following statements is true.

• A)The creation of a joint bank account constitutes a taxable gift.
• B)The creation of a joint tenancy by one person will result in a gift equal to the other joint tenant's pro rata interest in the property.
• C)The naming of a life insurance policy beneficiary constitutes a gift for transfer tax purposes.
• D)Since municipal bond interest is exempt from federal income taxation, gifting the bonds escapes the gift tax.

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Definitions:

Spanish Missionary Period

The era from the late 15th to the 18th centuries when Spanish missionaries established missions to convert Native Americans to Christianity.

French and Indian War

A conflict between France and Britain from 1754 to 1763 in North America, part of the greater Seven Years' War, with Native American tribes playing key roles on both sides.

African Religions

Traditional religions practiced in various parts of Africa, often characterized by belief in a supreme being, ancestral worship, and spirituality connected to nature.

Middle Passage

The sea voyage that transported enslaved Africans across the Atlantic Ocean to the Americas as part of the triangular trade.