Which of the Following Incorrect

question 10

Multiple Choice

Which of the following incorrect?
Statements about
Defined contribution plans is

• A) A defined contribution plan places the risk of poor pension portfolio performance on the employee.
• B) In general, employees can choose the investment vehicle under a defined contribution plan. Thus, highly risk-averse employees can choose low-risk investments, while more risk-tolerant employees can choose high-risk investments.
• C) In a defined contribution plan, the employer must make larger-than- average contributions to the pension plan when investment returns have been below expectations.
• D) Defined benefit plans are used more often by large corporations than by small companies.
• E) The PBGC insures a portion of pension benefits.

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Definitions:

Recognition

The identification of something as having been previously seen, heard, known, etc.

Three-Box Model

A model of memory that suggests information is processed through three stages: sensory memory, short-term (or working) memory, and long-term memory.

Short-Term Memory

The component of the memory system that holds a small amount of information for a brief period of time.

Priming

A psychological phenomenon where exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.