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:

Spherical

Having the shape or form of a sphere, often used to describe objects or celestial bodies.

Eyeballs

Organs of vision in humans and animals that detect light and convert it into electro-chemical impulses in neurons.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the high concentration of cones (photoreceptor cells) and lack of blood vessels.

Metabolic Rate

The rate at which the body uses energy to maintain basic life functions such as breathing, circulation, and cell production.