Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A)The difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments.
• B)Most car loans,mortgages,and some bonds are annuities.
• C)A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.
• D)An annuity is a stream of N equal cash flows paid at irregular intervals.

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Definitions:

Income Quintile

A statistical measure that divides a population into five equal groups according to their income levels, used to analyze income distribution.

Highest Quintile

Refers to the top 20% of the population sorted by income or wealth, indicating those with the highest levels of each.

Welfare Reform Act

Legislation aimed at changing the welfare system by encouraging work, limiting the duration of benefits, and supporting families.

Poverty Rate

The poverty rate measures the proportion of a population living below the poverty line, indicating the percentage of people whose income falls below a threshold necessary for basic living standards.