Which of the Following Statements Is CORRECT

question 11

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 beginning of the periods.
• E) The cash flows for an annuity may vary from period to period, but they must occur at regular intervals, such as once a year or once a month.

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Definitions:

Market Pay Policy

A compensation strategy that aligns employee salaries with the going rate for similar roles in the external job market.

Pay Survey Data

Information collected from various businesses on salary and benefits, used to benchmark and determine competitive salary ranges and compensation plans.

Job Descriptions

Detailed documents outlining the tasks, responsibilities, skills, outcomes, and work environment of a specific job position.

Green-Circled

Indicates employees who are paid above the maximum of the pay range for their position due to their skills, performance, or experience.