Which Statement Explains the Risk Involved in "Defined Benefit Plans

question 21

Multiple Choice

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

• A)The plan places investment risk on employees since the future benefits are pre-specified.
• B)The plan sponsor never needs to increase its contributions to the pension trust.
• C)The plan may require the employee to pay $200 per month for each year of service.
• D)The plan specifies the eventual outflows from the pension trust to future retirees.

---

Definitions:

Contamination

The presence of unwanted substances or impurities in a material, environment, or organism, leading to possible harm.

Anxiety

A sense of agitation, nervous tension, or unease, commonly about a forthcoming occurrence or something with an unknown conclusion.

Neurotransmitter Circuit

A pathway in the brain along which neurotransmitters travel to convey messages between neurons.

Serotonin

A neurotransmitter involved in many functions, including mood regulation, digestion, and sleep.