Is there a potential problem if governments continually finance goods and services by borrowing money ? a. yes, it is unconstitutional for governments to borrow money. b) yes, eventually their debts must be repaid with interest. c) no, governments can accumulate debts without limit. d) no, it is always easier to pay off the debts later.

Which of the following is true concerning the 5/5 lapse rule? a) the 5/5 lapse rule deems that a taxable gift has been made where a power to withdraw in excess of $5,000 or five percent of the trust assets is lapsed by the powerholder. b) the 5/5 lapse rule only comes into play with a single beneficiary trust. c) amounts that lapse under the 5/5 lapse rule qualify for the annual exclusion. d) gifts over the 5/5 lapse rule do not have to be disclosed on a gift tax return.