Which of the Following Statements Is CORRECT

question 159

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) The cash flows for an ordinary (or deferred) annuity all occur at the beginning of the periods.
• C) If a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity.
• D) The cash flows for an annuity due must all occur at the beginning of the periods.
• E) The cash flows for an annuity may vary from period to period, but they must occur at regular intervals, such as once a year or once a month.

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Definitions:

Displacement

A redirection of an impulse from a channel that is blocked into another, more available outlet.

Psychosexual Stages

A theory proposed by Freud describing how personality develops through five stages (oral, anal, phallic, latency, genital) centered on erogenous zones.

Phallic

Relating to or resembling the penis, often used in the context of Freudian psychoanalysis to describe a stage of human development.

Genital

Pertaining to the external and internal organs of reproduction in both males and females.