Which Statement Explains the Risk Involved in "Defined Benefit Plans

question 21

Multiple Choice

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

• A)The plan places investment risk on employees since the future benefits are pre-specified.
• B)The plan sponsor never needs to increase its contributions to the pension trust.
• C)The plan may require the employee to pay $200 per month for each year of service.
• D)The plan specifies the eventual outflows from the pension trust to future retirees.

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Definitions:

mRNA

Messenger RNA, a type of RNA that is transcribed from DNA and carries instructions for synthesizing proteins to the ribosomes.

Ribosome

Ribosomes are molecular machines within cells that synthesize proteins by translating messenger RNA into polypeptide chains, essential for all cellular functions.

Polypeptide Chain

A long, continuous, and unbranched chain of amino acids linked by peptide bonds that forms part of the structure of proteins.

tRNA Molecules

Transfer RNA; small RNA molecules that transport amino acids to the ribosome during protein synthesis, ensuring the correct amino acid sequence is assembled according to the mRNA template.