Ch 2 practice question Flashcards
purchase payments are invested in what type of account within an equity indexed annuity
general
purchase payments are invested in what type of account within variable annuity
separate
% of underlying index’s increase credited each year to the equity indexed annuity contract is called participation rate or annual cap?
participation rate
individuals concerned about protecting purchasing power typically choose to invest in what type of annuities
variable
largest monthly check is received with what type of settlement option: straight lift or period certain
straight life
of these two money market securities which is backed by collateral — comm paper or banker’s acceptance
banker’s acceptance
what is issued at discount to face value — comm paper or negotiable CDs
commerical paper
which has higher nominal yeild to investors — debentures or subordinated debentures?
subordinated debentures
which has higher nominal yeild to investors — growth or value firm?
growth firms
all open end funds have what type of fee
operating expense fee
not all open end fund impose what type of fee
sales charges
where can you see the dollar amount paid by a mutual fund to the investment advisor of the fund— prospectus or Statement of Addition information
Statement of Addition information
use of leverage is common in closed fund or open fund
close end fund
an investment comp with no investment advisor or board of directors is what
unit investment trust
warrants are issued with a bond offering are short term or long term
long term
