The Exclusion Ratio for a Purchased Annuity Is the Cost

question 58

True/False

The exclusion ratio for a purchased annuity is the cost of the annuity divided by the interest rate.

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Definitions:

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit a similar response.

Classical Conditioning

A learning process that pairs a neutral stimulus with a stimulus that naturally produces a response until the neutral stimulus alone produces the same response.

Operant Conditioning

A behavioral modification method in which the level of an action is shaped by giving incentives or imposing deterrents.

Particular Consequence

Specific outcomes or results that follow from a particular action, decision, or event, with implications for those involved.