One of the Causes of Underfunding of Pensions Were Experts

question 67

True/False

One of the causes of underfunding of pensions were experts' assumptions about rates of return.

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Definitions:

Agency

A relationship where one party (the agent) is authorized to act on behalf of another (the principal) in dealing with third parties.

Impossible

A term used to describe a task or condition that cannot realistically be fulfilled or achieved.

Agency Relationship

A legal arrangement in which one party, the agent, acts on behalf of another party, the principal, in conducting transactions with third parties.

Bind

To legally obligate oneself or another party to an agreement or contract.