Which Statement Explains the Risk Involved in "Defined Contribution Plans

question 33

Multiple Choice

Which statement explains the risk involved in "defined contribution plans"?

• A)Poor returns on the pension investments reduce the benefits for future retirees.
• B)High returns on the pension investments increase the benefit payments for the employer.
• C)The plan specifies the fixed benefits that future retirees will receive.
• D)The plan provides benefits to future retirees depending on their years of service.

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Definitions:

Extroverts

Individuals who are outgoing, social, and derive energy from interactions with other people.

Introverts

Individuals who prefer minimally stimulating environments and tend to recharge by spending time alone.

Contradiction

A situation or statement in which two or more things are opposed to each other or are mutually exclusive.

Radar Machine

A device that uses electromagnetic waves to detect the position, velocity, and other characteristics of distant objects, commonly used in navigation and weather forecasting.