Finances of Many State and Local Government Pension Programs Are

question 3

Multiple Choice

Finances of many state and local government pension programs are a problem because

• A) Pension managers used an interest or discount rate that was too low when determining the amount of money to be set aside each year to cover future benefits.
• B) State and local governments improperly diverted public revenues into pension funds to garner political support from government employees.
• C) Many state and local governments made inadequate contributions into the pension funds to support promised future benefits.
• D) States assumed the obligations of local pension programs.

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Definitions:

Aggregate Planner

A methodology used in manufacturing to determine optimal production levels, inventory levels, and workforce levels, considering various factors over a medium-term horizon.

Inventory

The total amount of goods or materials held in stock by a business or organization.

Backlog Costs

Expenses associated with delays in filling orders or meeting service obligations, often due to insufficient inventory or production capacity.

Level Strategy

A business approach that maintains steady production rates and workforce levels, even in the face of demand fluctuations, aiming for operational stability.