Series 7 - General Securities Representative Exam
Preview Mode
Which of the following is TRUE of variable annuities?
They have a guaranteed rate of return
A
They have a fixed rate of return.
B
They have tax-deferred treatment of earnings
C
They have a higher rate of return than that of fixed annuities
D
Explanations
Variable annuities have tax-deferred treatment of earnings. The other 3 statements are not true of variable annuities. The may have a higher rate of return than fixed annuities sometimes; but the return is variable and could just as well be lower