When the Social Security System Enters Its Deficit Years and the Bonds

question 185

Multiple Choice

When the Social Security system enters its deficit years and the bonds held in the trust funds are drawn down,

• A) overall taxes will be reduced as the trust funds are used to pay benefits to retirees.
• B) the payroll taxes used to finance Social Security benefits can be reduced because the trust funds will be sufficient to pay the retirement benefits of the baby boom generation.
• C) income and other federal taxes will have to be raised (or additional funds will have to be borrowed) in order to redeem the bonds held by the trust fund.
• D) income taxes will have to be reduced in order to keep the revenues and expenditures of the Social Security system in balance.

Implement fall prevention strategies in healthcare settings and for the elderly.

Identify and employ measures for managing and preventing injuries in clients.

Demonstrate an understanding of Accreditation Canada’s patient safety goals.

Promote a safety-first culture within healthcare settings, including error reporting and response strategies.

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Definitions:

Adverse Selection

A situation in finance and insurance where parties with higher risk are more likely to engage in agreements, potentially leading to imbalances in the market.

Actuarial Error

Mistakes in the calculations or assumptions made by actuaries, which can affect insurance premiums, pension plans, and other financial assessments.

Consumption Smoothing

An economic concept that describes how individuals attempt to achieve a stable level of consumption over their lifetime, regardless of fluctuations in income.

Defined Benefit Pension

A type of pension plan where an employer promises a specified monthly benefit upon retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.