Which of the Following Statements Is CORRECT

question 47

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 ends of the periods.
• E) The cash flows for an annuity must all be equal, and they must occur at regular intervals, such as once a year or once a month.

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Definitions:

Average Income

A measure of the total income received by the average individual or household within a specified demographic or economic unit over a given period.

Female-headed Households

Families or households where the primary caregiver or head is a woman.

Poverty

A state or condition in which an individual or community lacks the financial resources and essentials for a minimum standard of living.

Libertarians

Individuals who advocate for minimal government intervention in personal and economic matters, emphasizing individual liberty and the free market.