Which of the Following Statements About the Financing of Unemployment

question 39

Multiple Choice

Which of the following statements about the financing of unemployment insurance benefits is true?

• A)Each state maintains its own trust fund at the state level,and the state pays qualified beneficiaries from the trust fund the state administers.
• B)While experience rating is used for other types of insurance,it is not used in unemployment insurance.
• C)Part of an employer's contribution is used for administrative expenses,to fund extended benefits,and to maintain a loan fund that can be drawn upon if the state's account is depleted.
• D)Most state programs are financed primarily by payroll taxes paid by employees.

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