The Most Popular and Least Complicated Method of Purchasing Shares

question 87

Multiple Choice

The most popular and least complicated method of purchasing shares in an open-end mutual fund is through a:

• A)regular account transaction.
• B)voluntary savings plan.
• C)contractual savings plan.
• D)minimum withdrawal plan.
• E)free contract plan.

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Definitions:

Pension Asset

Refers to the resources set aside by a company in a pension fund to meet future pension liabilities to its employees.

Projected Benefit Obligation

A measurement of the present value of future pension benefits earned to date as estimated by actuaries, used in accounting for pension plans.

Balance Sheet

A report detailing a company's assets, obligations, and the equity of its shareholders at a particular moment.

Projected Benefit Obligation

An actuarial estimate of the total present value of future retirement benefits earned to date, adjusted for expected future salary increases.