Which Statement Explains the Risk Involved in "Defined Contribution Plans

question 33

Multiple Choice

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

• A)Poor returns on the pension investments reduce the benefits for future retirees.
• B)High returns on the pension investments increase the benefit payments for the employer.
• C)The plan specifies the fixed benefits that future retirees will receive.
• D)The plan provides benefits to future retirees depending on their years of service.

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Definitions:

Procrastination

The action of delaying or postponing tasks, often due to avoidance or poor time management, leading to stress or reduced productivity.

Tempting

Appealing or attractive, often in a way that makes someone want to do or engage in something impulsively.

Short-Term Reward

Instant gratification or benefits received immediately after completing a task or making a decision, contrasting with long-term rewards.

Neat Freak

An informal term for someone who is obsessively clean or orderly, often going to great lengths to maintain a specific level of tidiness.