Number $14$

An annuity is

A$.$ A series of random payments in perpetuity.

B$.$ payment plan for liablities owed

C$.$ a series of regular payments at regular intervals and each payment is the same amount.

D$.$ series of cash flows occurring at random but consistent intervals

Number $15$

The following are characteristics of risk and return:

A$.$ Risk is measured by the difference between actual returns and expected returns $.$ Returns are created in two ways: the investment creates income or the investment gains $($or loses$)$ value.

B$.$ Investment risk is the idea that an investment will perform as expected. To calculate the annual rate of return for an investment, you only need to know the income created and the gain in value.

C$.$ Risk should only be taken by experienced investors. Returns can be less than its costs.

D$.$ Both an and b are correct.

Number $17$

An example of a progressive tax is

A$.$ Income and tax sales ; good and services tax

B$.$ Alcohol tax; real property tax

C$.$ Income tax; sales tax

d$.$Sales tax; income tax

Number $20$

The Best way to use income diversification as a risk management strategy is:

A$.$ Have multiple source of income that are diverse in number and in kind

B$.$ None of the above because the best way to reduce income risk is to stay loyal to one employer till you retire

C$.$ Sell your labor to one buyer

D$.$ Create surplus capital by working longer hour