Which of the Following Statements Concerning Defined Benefit and Defined

question 21

Multiple Choice

Which of the following statements concerning defined benefit and defined contribution pension plans is (are) true?
I.The employer bears the investment risk with a defined contribution plan.
II.Defined benefit plans favor workers who enter the plan at older ages.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Annuity Due

An annuity in which payments are made at the beginning of each period.

Equal Payments

Regular payments of the same amount over a specified period, often used in loan repayments or annuities.

Time Period

A specific duration marked by a start and an end point, often used to measure or track events, performance, or changes.

Ordinary Annuity

Regular payments of the same amount delivered at the close of successive intervals, across a specified timeframe.