Series 7 - General Securities Representative Exam

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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

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