Which of the Following Is True with Respect to an IRA

question 17

Multiple Choice

Which of the following is true with respect to an IRA?

• A) Every IRA must have a trustee or custodian
• B) The individual's interest must be forfeitable
• C) Investments may not be made in highly speculative investments
• D) Distribution must begin when annuitant is 70½ years old or the IRS will impose a penalty tax
• E) A, C, and D

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Definitions:

Reinforcing

The process of strengthening a behavior by providing a consequence that the individual finds rewarding.

Punishing

The act of imposing a penalty or negative consequence for an undesirable action or behavior, with the intent of reducing or eliminating that behavior.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Respondent Behavior

Behavior that is elicited by a specific stimulus and is part of the classical conditioning process, such as salivating when smelling food.