Refer to the Figure

question 39

Multiple Choice

Refer to the figure.
The figure shows examples of possible disturbance intensity (y-axis) and frequency (x-axis) combinations.
- What type of disturbance would be likely represented by B?

• A) Flood
• B) Active volcano
• C) Hurricane
• D) Forest fire

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Definitions:

Pension Discount Rate

The interest rate used to determine the present value of future pension liabilities.

Current Cash Flows

The money that is moving in and out of a business in the present time, especially as it pertains to operating activities.

Past Service Costs

Costs related to pension plan benefits earned by employees in prior periods, which are recognized in the current period due to plan amendments or changes.

Actuarial Gains and Losses

Gains or losses that arise from the adjustment of assumptions or the application of actuarial models differently over time in evaluating a company's pension liabilities.