Multiple Choice
In analyzing a company's current business portfolio, which of the following tools is most commonly used to evaluate the performance and strategic position of its investments in securities?
100
views
7. Receivables and Investments
Introduction to Investments in Securities
Multiple Choice
For which of the following needs are traditional deferred annuities most commonly used?
A
To maximize short-term capital gains
B
To provide income during retirement after a period of accumulation
C
To insure against property loss
D
To offer immediate liquidity for short-term expenses
Verified step by step guidance1
Understand the concept of a deferred annuity: A deferred annuity is a financial product designed to provide income at a future date, typically during retirement, after an accumulation phase where contributions grow tax-deferred.
Analyze the options provided in the question: Evaluate each option to determine which aligns with the primary purpose of a deferred annuity.
Option 1: 'To maximize short-term capital gains' - This does not align with the purpose of deferred annuities, as they are designed for long-term income rather than short-term gains.
Option 3: 'To insure against property loss' - Deferred annuities are not insurance products for property loss; they are retirement-focused financial instruments.
Option 4: 'To offer immediate liquidity for short-term expenses' - Deferred annuities are not designed for immediate liquidity; they are intended to provide income after a period of accumulation, making Option 2 the correct answer.
Related Videos
Related Practice
