Which of the Following Best Describes a Defined Benefit Pension

question 15

Multiple Choice

Which of the following best describes a defined benefit pension plan?

• A) A plan in which each employee has his or her own account and the benefits are based only on the principal and income contributed
• B) A plan that is established to provide health, vacation, or unemployment benefits through contributions solely made by employees
• C) A plan where the amount payable to a participant is determined by a formula, the funding of which is determined actuarially
• D) A plan in which the security comes from knowing the amount of principal that will be invested

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Definitions:

Medical Conditions

Health issues that are diagnosed and treated by medical professionals, often involving physiological processes.

Antioxidants

Substances that may protect cells from the damage caused by unstable molecules known as free radicals.

"Good" Cholesterol

High-density lipoprotein (HDL) cholesterol, which helps remove other forms of cholesterol from the bloodstream.

"Bad" Cholesterol

Low-density lipoprotein (LDL) cholesterol, often referred to as "bad" cholesterol, which can build up in arteries and increase the risk of heart disease.