AD Banker Chapter 5 Exam Questions With
Correct Answers
Mr. |& |Mrs. |Smith |received |monthly |benefits |from |their |annuity, |and |upon |Mr. |Smith's |death, |
Mrs. |Smith |receives |a |reduced |amount. |What |annuity |option |did |they |choose?
a. |Life |Income |Joint |Survivor |
b. |Life |with |Cash |Refund
c. |Joint |Life
d. |Life |Income |- |CORRECT |ANSWER✔✔-a. |Life |Income |Joint |and |Survivor
Jill |wants |to |know |how |much |to |put |into |her |annuity |in |order |to |receive |the |greatest |benefit |
payment |amount. |Which |of |the |following |will |provide |her |with |the |largest |monthly |income |
regardless |of |the |settlement |option |selected?
a. |$1,000,000
b. |$750,000
c. |$500,000
d. |$250,000 |- |CORRECT |ANSWER✔✔-a. |$1,000,000
The |annuity |settlement |option |that |pays |out |the |highest |monthly |income |for |as |long |as |the |
annuitant |lives, |and |leaves |no |residual |value |upon |the |annuitant's |death, |is |the:
a. |Life |Income |with |Refund |Option
b. |Life |Income |Joint |and |Survivor |Option
c. |Joint |Life |Option
d. |Life |Income |Options |- |CORRECT |ANSWER✔✔-d. |Life |Income |Option
Annuities |are |primarily |designed |to |accumulate |funds |for |a(n) |____________ |fund.
, a. |College
b. |Emergency
c. |Retirement
d. |Mortgage |- |CORRECT |ANSWER✔✔-c. |Retirement
Jasmine |has |deposited |$100,000 |into |a |single |premium |immediate |annuity. |If |Jasmine |were |to |
die |before |receiving |$100,000 |in |payments, |the |balance |of |the |$100,000 |would |be |paid |to |her |
sister. |Jasmine |has |selected |the:
a. |Life |Income |Period |Certain |Option
b. |Life |Income |with |Refund |Option
c. |Life |Income |Joint |and |Survivor |Option
d. |Joint |Life |Option |- |CORRECT |ANSWER✔✔-b. |Life |Income |with |Refund |Option
Annuity |income |benefit |payments |are |based |on |all |of |the |following, |except:
a. |Age
b. |Gender
c. |Education |Level
d. |Settlement |Option |Selected |- |CORRECT |ANSWER✔✔-c. |Education |Level
If |an |annuity |is |purchased |in |December |and |monthly |benefits |begin |in |January |of |the |
following |year, |what |type |of |annuity |is |it?
a. |Variable |Retirement |Annuity
b. |Single |Premium |Fixed |Annuity
c. |Flexible |Premium |Tax |Sheltered |Annuity
d. |Single |Premium |Immediate |Annuity |- |CORRECT |ANSWER✔✔-d. |Single |Premium |Immediate |
Annuity
Correct Answers
Mr. |& |Mrs. |Smith |received |monthly |benefits |from |their |annuity, |and |upon |Mr. |Smith's |death, |
Mrs. |Smith |receives |a |reduced |amount. |What |annuity |option |did |they |choose?
a. |Life |Income |Joint |Survivor |
b. |Life |with |Cash |Refund
c. |Joint |Life
d. |Life |Income |- |CORRECT |ANSWER✔✔-a. |Life |Income |Joint |and |Survivor
Jill |wants |to |know |how |much |to |put |into |her |annuity |in |order |to |receive |the |greatest |benefit |
payment |amount. |Which |of |the |following |will |provide |her |with |the |largest |monthly |income |
regardless |of |the |settlement |option |selected?
a. |$1,000,000
b. |$750,000
c. |$500,000
d. |$250,000 |- |CORRECT |ANSWER✔✔-a. |$1,000,000
The |annuity |settlement |option |that |pays |out |the |highest |monthly |income |for |as |long |as |the |
annuitant |lives, |and |leaves |no |residual |value |upon |the |annuitant's |death, |is |the:
a. |Life |Income |with |Refund |Option
b. |Life |Income |Joint |and |Survivor |Option
c. |Joint |Life |Option
d. |Life |Income |Options |- |CORRECT |ANSWER✔✔-d. |Life |Income |Option
Annuities |are |primarily |designed |to |accumulate |funds |for |a(n) |____________ |fund.
, a. |College
b. |Emergency
c. |Retirement
d. |Mortgage |- |CORRECT |ANSWER✔✔-c. |Retirement
Jasmine |has |deposited |$100,000 |into |a |single |premium |immediate |annuity. |If |Jasmine |were |to |
die |before |receiving |$100,000 |in |payments, |the |balance |of |the |$100,000 |would |be |paid |to |her |
sister. |Jasmine |has |selected |the:
a. |Life |Income |Period |Certain |Option
b. |Life |Income |with |Refund |Option
c. |Life |Income |Joint |and |Survivor |Option
d. |Joint |Life |Option |- |CORRECT |ANSWER✔✔-b. |Life |Income |with |Refund |Option
Annuity |income |benefit |payments |are |based |on |all |of |the |following, |except:
a. |Age
b. |Gender
c. |Education |Level
d. |Settlement |Option |Selected |- |CORRECT |ANSWER✔✔-c. |Education |Level
If |an |annuity |is |purchased |in |December |and |monthly |benefits |begin |in |January |of |the |
following |year, |what |type |of |annuity |is |it?
a. |Variable |Retirement |Annuity
b. |Single |Premium |Fixed |Annuity
c. |Flexible |Premium |Tax |Sheltered |Annuity
d. |Single |Premium |Immediate |Annuity |- |CORRECT |ANSWER✔✔-d. |Single |Premium |Immediate |
Annuity
