Which of the Following Statements About Annuity Contracts Is True

question 56

Multiple Choice

Which of the following statements about annuity contracts is true?

• A) Annuity contracts provide a fixed income stream.
• B) Payments received from an annuity contract are tax-exempt.
• C) Payments received from an annuity contract are fully taxable as ordinary income.
• D) Payments received from an annuity contract are fully taxable as capital gain.

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Definitions:

Unconstitutional

Something that is not in accordance with a political constitution, especially the US Constitution, or with procedural rules.

Brown V. Board

A landmark Supreme Court case in 1954 where it was ruled that racial segregation in public schools was unconstitutional.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction and the ability to rule on constitutional issues.

Racially Segregated Schools

Educational institutions that were divided based on race, a practice declared unconstitutional in the United States in 1954 by Brown v. Board of Education.