A Pension Fund Purchases Bonds So That the Payments from the Bonds

question 46

Multiple Choice

A pension fund purchases bonds so that the payments from the bonds provide sufficient cash inflow in a timely manner to offset the cash outflows from the pension fund. What is this investment strategy called?

• A)cash flow matching
• B)cash diversification
• C)cash stabilization
• D)in-out investing
• E)plain vanilla matching

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Definitions:

Independent Variable

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Evaluate

means to systematically determine the merit, value, or significance of something, often used in the context of assessing programs or research findings.

True Scores

In psychometrics, the accurate measurement of a concept or construct that a test intends to measure, in the absence of error.