Which of the Following Statements Is Correct

question 84

Multiple Choice

Which of the following statements is correct?

• A)In part,Congress established pension plan rules to encourage individuals to save for retirement.
• B)Retirement plans are generally not tax-free,only tax-deferred.
• C)Individuals or companies usually establish a pension plan with a trustee.
• D)All of the statements are correct.

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Definitions:

Guaranteed Interest Rates

Interest rates promised to remain constant over a defined period, often associated with savings instruments like fixed deposits.

Maturity Value

The amount payable to an investor at the end of a fixed term investment.

Financial Planning

The process of creating strategies for managing finances to achieve personal financial goals.

Inflation Rate

The velocity at which there is a general increase in the cost of goods and services, thereby reducing the effective purchasing capability.