Which of the Following Types of Pension Plan, with Fixed

question 97

Multiple Choice

Which of the following types of pension plan, with fixed payouts, is falling out of use?

• A) contributory plan
• B) registered retirement savings plan (RRSP)
• C) defined benefit plan
• D) defined contribution plan

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Definitions:

Premium

An amount paid in addition to a standard price, or the amount above the nominal or face value of a financial instrument.

Discount

A reduction in the price of goods, services, or financial instruments, often used as a marketing strategy or to encourage early payment.

International Fisher Effect

A theory stating that differences in nominal interest rates between two countries are directly proportional to changes in the exchange rate over the same period.

Nominal Rates

Interest rates or rates of return that have not been adjusted for inflation.