Event a Occurs Before Event B in a Certain Frame

question 56

Multiple Choice

Event A occurs before event B in a certain frame of reference. In another frame of reference, event A could occur

• A)after event B.
• B)simultaneous with event B.
• C)either of these
• D)neither of these

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Definitions:

Premium

The amount paid for an insurance policy, often on a monthly, quarterly, or annual basis.

Beneficiaries

Individuals or entities entitled to receive benefits or proceeds from an insurance policy, will, or trust.

Roth IRA

Deposits are taxable, but when the money is withdrawn after having been there for at least 5 years and the saver is at least 59 1/2 years old, the money and the income earned is tax-exempt, or free from all taxes.

Tax-Deferred

Taxes are paid at the time the money is withdrawn from the account, not when the money is actually earned.