Finra Exam Series-6 Topic 10 Question 15 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 15
Topic #: 10

One difference between investing in a variable annuity and in a mutual fund is that:

Athe variable annuity guarantees a minimum rate of return on your investment.

Bthe premiums invested in a variable annuity grow tax-deferred.

Cthe fees and charges associated with investing in a mutual fund are much higher than those associated with investing in a variable annuity contract.

DMutual fund investors have voting rights; owners of variable annuity contracts have no voting rights.

Show Suggested Answer

Suggested Answer: B

A difference between investing in a variable annuity and in a mutual fund is that the premiums invested in a variable annuity grow tax-deferred. The variable annuity contract does not guarantee a minimum rate of return on your investment, and the fees associated with a variable annuity contract are significantly higher than those associated with an investment in a mutual fund. Owners of variable annuity contracts have voting rights, just like mutual fund investors.

by Lai at May 10, 2022, 03:10 AM

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