Actuarial Gain or Loss Is the Change in PBO That

question 68

True/False

Actuarial gain or loss is the change in PBO that occurs when one or more actuarial assumptions are revised in estimating PBO.

---

Definitions:

Inflation Level

Inflation level measures the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Base Year

A specific year chosen as a point of reference or benchmark for financial or economic data comparison over time.

Laspeyres Index

A measure of price inflation that calculates the relative price change of a fixed basket of goods and services at current prices compared to the prices of the same basket in a base period.

Price Levels

The overall average price of all goods and services made in the economy.