A Conflict of Interest Occurs When an Activity May Benefit

question 6

True/False

A conflict of interest occurs when an activity may benefit the individual to the detriment of his or her employer.

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Definitions:

TIPS

Treasury Inflation-Protected Securities, a type of U.S. Treasury bond designed to help investors protect against inflation.

Fully-Funded Pension Funds

Pension plans that have sufficient assets to meet all the pension obligations to participants, both present and anticipated.

Inflation Hedge

An investment that is considered to protect against the decrease in purchasing power due to inflation.

Variable Life Insurance

A type of life insurance where the cash value and death benefit can vary based on the performance of a set of chosen investments.