Annuities Are Often Purchased for

question 36

Multiple Choice

Annuities are often purchased for

• A) 401(k) plans.
• B) Certificates of deposit.
• C) Individual retirement accounts (IRAs).
• D) Term life insurance plans.
• E) Whole life insurance plans.

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Definitions:

Purchase Money Security Interest

A legal claim or lien on collateral provided by a borrower to secure a loan used to purchase the collateral.

Personal Property Security Act

Legislation governing the use of personal property as security for a loan or obligation, detailing rights concerning collateral.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a loan.

Guarantee

A written commitment whereby a guarantor agrees to pay a debt if the debtor does not.