Emily, Whose Husband Died in December 2011, Maintains a Household

question 46

Multiple Choice

Emily, whose husband died in December 2011, maintains a household in which her dependent daughter lives.Which (if any) of the following is her filing status for the tax year 2012? (Note: Emily is the executor of her husband's estate.)

• A)Single.
• B)Married, filing separately.
• C)Surviving spouse.
• D)Head of household.
• E)Married, filing jointly.

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Definitions:

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, used in derivatives markets.

Exchange Rate

The worth of one currency in relation to another for converting between them, showing the amount one currency is equivalent to in another currency.

Interest Rate Parity

A theory which posits that the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and the spot exchange rate.

Interest Rate Differential

The difference in interest rates between two financial instruments or two countries, often influencing currency values and investment flows.