All of the Following Statements About the Interest Settlement Option

question 53

Multiple Choice

All of the following statements about the interest settlement option are true EXCEPT

• A)The minimum guaranteed interest rate is usually equal to the prime rate.
• B)The interest can be paid monthly,quarterly,semiannually,or annually.
• C)The beneficiary may be allowed to withdraw part or all of the proceeds.
• D)The beneficiary may be allowed to change to another settlement option.

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Definitions:

ATC

Average Total Cost, which is calculated by dividing total costs by the quantity of output produced.

MC

Marginal Cost, the increase in total cost that arises from an extra unit of production.

MR

Marginal Revenue, the additional income generated from selling one more unit of a product or service.

Perfectly Elastic

Perfectly elastic refers to a situation where the quantity demanded or supplied responds infinitely to changes in price.