The Subaccounts into Which Mr

The subaccounts into which Mr. Sumrisk directed his variable life premiums have earned a 6% return. If the assumed interest rate was 7%:
I. the cash value of his policy increased.
II. the death benefit associated with his policy decreased.
III. the cash value of his policy decreased.
IV. the death benefit associated with his policy increased.

A) both I and II
B) both I and IV
C) both II and III
D) both III and IV

Correct Answer:

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