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.

---

Definitions:

Marginal Rate

The marginal rate often refers to the rate at which the next unit of time, expenditure, or activity will be valued, commonly used in the context of marginal tax rates or marginal rate of substitution in economics.

Upper Middle Class

A socioeconomic tier directly below the highest tier, typically characterized by higher education, professional careers, and a comfortable standard of living.

Working Class

A social group consisting of people employed in lower tier jobs, often involving manual or industrial labour, and receiving wages rather than salaries.

Federal Government

The national government of a federated state, which is responsible for national affairs.