Which of the Following Statements Regarding Defined Contribution Plans Is

question 108

Multiple Choice

Which of the following statements regarding defined contribution plans is False?

• A) Employers bear investment risk relating to the plan.
• B) Employees immediately vest in their contributions to the plan.
• C) Employers typically match employee contributions to the plan to some extent.
• D) An employer's vesting schedule is used for employers' contributions in determining the amount of the plan benefits the employee is entitled to receive on retirement.

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Definitions:

Misinformation Effect

A phenomenon where a person's recall of memories becomes less accurate due to being provided with misleading information after the event.

Eyewitness Recollections

Memories of an event as reported by individuals who have directly witnessed the event.

Underestimate

To judge something to be smaller or less important than it actually is.

Overestimate

To assess something as more significant or numerous than it actually is, often due to overvaluation or miscalculation.