Question

How does the general economic situation impact withdrawal rates?

a.

Economic deterioration is likely to decrease withdrawal rates for all contract types

b.

Economic conditions have no effect on withdrawal rates

c.

Deterioration in economic conditions may increase withdrawal rates, depending on the contract type

d.

Economic stability always leads to higher withdrawal rates

Answer: (c).Deterioration in economic conditions may increase withdrawal rates, depending on the contract type Explanation:Deterioration in economic conditions may increase withdrawal rates, but the impact depends on the type of contract.

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Q. How does the general economic situation impact withdrawal rates?

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