Which of the Following Statements Regarding Defined Contribution Plans Is

question 16

Multiple Choice

Which of the following statements regarding defined contribution plans is false?

• A)Employers bear investment risk relating to the plan.
• B)Employees immediately vest in their contributions to the plan.
• C)Employers typically match employee contributions to the plan to some extent.
• D)An employer's vesting schedule is used for employers' contributions in determining the amount of the plan benefits the employee is entitled to receive on retirement.

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Definitions:

Daily Settlement

The process of settling trades at the end of each trading day, including the calculation of gains and losses.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, in order to keep the account open.

Trader's Margin

The amount of equity contributed by a trader as a percentage of the current market value of the securities held in a trading account.

Established Value

The perceived worth or market value of an asset or company that has been recognized by investors or markets.