How do fixed and variable annuities differ?

How do fixed and variable annuities differ?

• A. Fixed annuity guarantees a steady payment; variable annuity payments vary with market performance.
• B. Fixed annuity payments are always higher than variable.
• C. A fixed annuity has investment risk for the policyowner.
• D. Variable annuity payments are fixed and never fluctuate.

Answer: (A)