In a Defined Benefit Pension Plan, the ________ Bears All

question 63

Multiple Choice

In a defined benefit pension plan, the ________ bears all of the fund's investment performance risk.

• A) employer
• B) employee
• C) fund manager
• D) government

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Definitions:

Drawee

The person or entity upon whom a check, draft, or bill of exchange is drawn and who is expected to pay it.

Payee

The person or entity to whom a payment is to be made or who receives the payment.

Negotiable Instruments

Financial documents, like checks or promissory notes, that guarantee payment of a specific amount of money to the bearer under certain conditions.

UCC

Stands for Uniform Commercial Code, which is a comprehensive set of laws governing all commercial transactions in the United States.