The Third Tier of the Pension System Is Comprised of

question 54

Multiple Choice

The third tier of the pension system is comprised of

• A) OAS and GIS
• B) employer pensions and RRSPs
• C) C/QPP and employer pensions
• D) SPA and the GIS
• E) employer pensions and GIS

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Definitions:

AAA Corporate Bonds

High-grade corporate bonds rated AAA, indicating the highest level of creditworthiness and lowest risk of default.

Volatility

The rate at which the price of a security increases or decreases for a given set of returns, often measured by the standard deviation of historical daily price changes.

Interest Rates

The cost of borrowing money or the return on investments, usually expressed as a percentage of the principal amount per annum.

Callable Bond

A type of bond that gives the issuer the right to repay the bond before its maturity date, typically at a predefined call price.