In the Context of Investing for Retirement, Which of the Following

question 96

Multiple Choice

In the context of investing for retirement, which of the following statements is true of 457 plans?

• A) They offer 50 percent tax deduction on a person's income.
• B) They are offered to employees of private-sector businesses.
• C) They allow an employee to enjoy tax-free earnings.
• D) They are primarily for state and local government employees.

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Definitions:

Elimination

The process of removing or excluding specific elements, options, or individuals from consideration or a group.

Social Cognitive Theory

A theory that posits individuals learn by observing others, with personal, behavioral, and environmental factors all interacting to influence learning and behavior.

Instrument Theory

A theoretical framework that suggests behaviors are guided by the expected outcomes or rewards associated with particular actions.

Organizational Behavior Modification

The application of reinforcement theory to influence and improve employee behavior within an organizational setting.