If Pension Fund Investment Decisions Are Made with the Objective

question 7

Multiple Choice

If pension fund investment decisions are made with the objective of generating cash flows at the same time as planned outflow payments, the fund follows a ____ strategy. When comparing matched funding and projective funding, ____ is more flexible for portfolio managers.

• A)matched funding; matched funding
• B)projective funding; matched funding
• C)projective funding; projective funding
• D)matched funding; projective funding

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Definitions:

Voltmeter

Device that measures the strength of electrical voltage by recording the difference in electrical potential between two points.

Current Meter

An instrument used for measuring the velocity and direction of water flow in rivers, streams, and oceans.

Patch Technique

A method in electrophysiology that involves sealing a tiny glass pipette onto a small patch of cell membrane to study ion channels.

Microelectrode

A very small electrode used to measure electrical activity in tissues such as the brain or muscles, often in neuroscience research.