Which of the Following Statements About Defined Contribution Plans Is

question 6

Multiple Choice

Which of the following statements about defined contribution plans is incorrect?

• A) In general, employees can choose the investment vehicle under a defined contribution plan.Thus, highly risk-averse employees can choose low-risk investments, while more risk-tolerant employees can choose high-risk investments.
• B) In a defined contribution plan, the employer must make larger-than-average contributions to the pension plan when investment returns have been below expectations.
• C) Defined benefit plans are used more often by large corporations than by small companies.
• D) The PBGC insures a portion of pension benefits.
• E) A defined contribution plan places the risk of poor pension portfolio performance on the employee.

Recognize the role of mutual funds in diversification and risk management through asset allocation and specialized-sector funds.

Comprehend the performance evaluation of mutual funds, including the examination of past performance as an indicator of future returns.

Understand different methods of memory testing, including savings, recall, recognition, and cued recall.

Grasp the theoretical framework and definitions of memory in psychology.

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Definitions:

Anti-labor

Policies or sentiments that oppose labor rights and interests, often favoring employers over workers in labor disputes.

Pro-employer

Policies or attitudes that favor the interests of employers over employees.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Exportable

Pertains to goods or services that can be sold abroad effectively, benefiting from international markets.