An Annuity

question 64

Multiple Choice

An annuity:

• A)has less value than a comparable perpetuity.
• B)is either an equal or an unequal stream of payments that occur in equal time periods for a finite period.
• C)is a stream of payments that fluctuate with current market interest rates.
• D)is a stream of equal payments that occur in equal periods of time for a finite period.
• E)has a longer life span than a perpetuity.

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Definitions:

Confidentiality

The obligation not to share or disclose private information to unauthorized parties.

Breach

The violation or breaking of a law, duty, or agreement, which can give rise to legal action or consequences.

Client Confidentiality Rule

Legal and ethical obligation of professionals to keep information related to a client secret unless given permission to disclose.

Financial Condition

The status of an individual's or organization's financial health and stability, often assessed through analysis of assets, liabilities, income, and expenditures.