Which Statement Explains the Risk Involved in "Defined Contribution Plans

question 33

Multiple Choice

Which statement explains the risk involved in "defined contribution plans"?

• A)Poor returns on the pension investments reduce the benefits for future retirees.
• B)High returns on the pension investments increase the benefit payments for the employer.
• C)The plan specifies the fixed benefits that future retirees will receive.
• D)The plan provides benefits to future retirees depending on their years of service.

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Definitions:

Social-Cognitive Perspective

A view of behavior as influenced by the interaction between people’s traits (including their thinking) and their social context.

Assumptions And Expectations

Refer to the beliefs and forecasts individuals hold about future events or behaviors, often influencing their reactions and decisions.

Biological Perspective

An approach to psychology focusing on understanding human and animal behavior through biological processes, including genetic, neurochemical, and physiological mechanisms.

Negative Explanatory Style

A cognitive approach where individuals habitually attribute negative events to internal, stable, and global factors.