Answer:
d. II and IV.
Explanation:
Since the investor has been making payments into a variable annuity for the last 20 years and decides to annuitize and selects a straight-life payout. The following statements would be true;
a. the investment risk is assumed by the customer.
b. the amount of the payment to the customer is not guaranteed.
An annuity is an agreement between an investor (contract owner) and an insurance company, where he or she gives a lump-sum of money to the insurer and in return receives regular disbursements, either immediately or some time in the future. It offers the following covers, legacy planning, primary protection, healthcare costs, lifetime income etc.
Annuities are generally classified into two (2) categories mainly; Fixed and Variable annuities.
Under the variable annuity, the investment risk is assumed by the customer (investor) unlike what is obtainable in the fixed annuity.
Ultimately, the performance of the separate account impacts the amount of the payment. Thus, the payment might decrease, increase, or even remain the same since the amount of the payment to the customer (investor) isn't guaranteed.
Further Explanation:
When an organization wants to reach its goals, it has to come up with strategies. No matter how big or small the organization is, it requires writing reports and business messages in order to understand its readers and analyze the audience receiving the message. With direct strategy approach, the main idea or purpose of the message comes at the top of the document while the indirect strategy approach conveys the conclusions and recommendations at the end of the message or report. It is the audience’s reaction conveyed through the messages that we are going to anticipate for. Direct strategy is used more when readers are supportive and eager to have results displayed to them first while indirect strategy is used more when readers need to be educated and persuaded.
Answer:
This quote highlights Adam Smith - Self Interest, Free Reign, Invisible Hand theories
Explanation:
Adam Smith is the Father of Economics.
His self interest theory states that : Individuals working for the best of self interest implies maximum welfare for society as a whole.
Hence, the free reign idea suggests that people as 'self interest' guided rational economic agents should be left free. The invisible hand of market restores any distortions.
Government intervention is considered to be not only unnecessary, but distortionary.
Free enterprise economy's freedom of producers provide these five benefits for individual consumers:
1. Private Property<span>Any individual has the right to own a private property for business and on business purposes.
2. Voluntary exchange
The government can own the land without the permission of the owner.
</span>3. Public Property<span>
</span>Any property that is government owned. 4. Choice5. Voluntary expense