Which of the Following Statements Is (Are)true with Regard to a Qualified

question 45

Multiple Choice

Which of the following statements is (are) true with regard to a qualified longevity annuity contract (QLAC) ?
I.A lump sum premium is paid to provide income at some future date.
II.A QLAC can be purchased to address the risk of exhausting retirement income from an employer-sponsored qualified retirement plan.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Many Sellers

A market condition in which there are numerous providers of a good or service, contributing to competitive pricing and variety for consumers.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on quality, price, and brand.

Oligopoly

An oligopoly is a market structure in which a few firms dominate the industry, leading to limited competition.