Which of the Following Statements Is CORRECT

question 118

Multiple Choice

Which of the following statements is CORRECT?

• A) The cash flows for an ordinary (or deferred)annuity all occur at the beginning of the periods.
• B) If a series of unequal cash flows occurs at regular intervals,such as once a year,then the series is by definition an annuity.
• C) The cash flows for an annuity due must all occur at the ends of the periods.
• D) The cash flows for an annuity must all be equal,and they must occur at regular intervals,such as once a year or once a month.
• E) If some cash flows occur at the beginning of the periods while others occur at the ends,then we have what the textbook defines as a variable annuity.

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Definitions:

Unfavourable Direction

A situation or trend that is not advantageous or beneficial, potentially leading to adverse outcomes or failure.

Multidimensional Thinking

The ability to analyze and approach problems from multiple perspectives and dimensions, recognizing various factors and potential impacts.

Time Horizons

The length of time over which an investment, project, or policy is intended or expected to operate or have an effect.

Problem Solving

The process of identifying a problem, generating solutions, and implementing an action plan to resolve the issue.