All of the Following Statements About Social Security Are Accurate

question 38

Multiple Choice

All of the following statements about Social Security are accurate EXCEPT:

• A) the program is funded by payroll taxes which both the employee and employer pay.
• B) it is intended to fully provide retirement or disability income to retired or disabled workers.
• C) upon retirement an employee receives Social Security based on a percentage of their average lifetime earnings.
• D) most individuals must work for at least 10 years in order to receive full credit towards the program.
• E) it is a tax which is considered part of an employee's FICA tax that is withheld from their paycheck.

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Definitions:

Investment Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.

Financial Assets

Assets that derive their value from a contractual claim on future cash flows or from owning equity instruments of another entity.

Variance

A statistical measure that represents the dispersion or spread of data points in a data set, indicating how far each number in the set is from the mean.

Standard Deviation

A measure of the dispersion or variability in a set of data points, indicating how much the values deviate from the mean.