Annuities. What is an annuity? What is the difference between a fixed annuity and a variable annunity? What is the main disadvantage of annuities? An annuity is a: (Select the best answer below.) O A. financial contract that provides annual payments that are renegotiated every year. B. financial contract that you renegotiate every year. O C. type of account in which you make annual contributions. O D. financial contract that provides annual payments for a specified period or for the annuitant's life. A fixed annuity: (Select the best answer below.) O A. allows the investor to choose among various investment vehicles with varying returns. O B. provides a specified return on an investment. C. enables the investor to renegotiate the terms every year. D. cannot be started until retirement age. The main disadvantage of annuities is the: (Select the best answer below.) O A. tax liability. B. high fees associated with them charged by the financial institution that sells and manages them. O C. low interest rates offered. OD. poor performance of these types of accounts