Q1. An advantage of a variable annuity over a fixed annuity is the: A) variable annuity offers stable income over the life of the purchaser of the annuity. B) variable annuity offers the opportunity to stay even with the rate of inflation. C) purchaser of the variable annuity will never out live the income stream from the annuity.
Q2. Which of the following is NOT a drawback to a fixed annuity? A) The investor usually cannot void the contract. B) The cash flows could be zero if the underlying asset return is negative for the investment period. C) The real value of the cash flows may decline over time.
Q3. Which of the following is NOT an example of a drawback to fixed annuities? A) The payments in some periods may fail to meet the investor’s needs or may be zero if the funds lose money. B) The real values of the cash flows fall over time. C) The investor could become locked into a low interest rate.
Q4. An advantage of a fixed annuity over a variable annuity is: A) the fixed annuity’s income stream is stable throughout the life of the annuity purchaser. B) the fixed annuity’s income offers a hedge against inflation during periods of stagflation. C) fixed annuities are easier to terminate than variable annuities.
| 
发表于 2009-1-20 10:11
| 
