Which of the Following Is Not a Characteristic of a Defined

question 14

Multiple Choice

Which of the following is not a characteristic of a defined benefit pension plan?

• A)Benefits are based on actual contributions plus amounts earned on the contributions
• B)Benefits are linked to the number of years worked by the employee
• C)Benefits are based on a formula that considers salaries earned by the employee
• D)Benefits,rather than contributions,are guaranteed by the employer

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Definitions:

Chance Of Default

The probability that a borrower will be unable to meet their obligation to repay a loan or meet contractual obligations.

Monthly Interest Rate

The interest rate expressed as a monthly percentage, reflecting the cost of borrowing money or the earnings from lending money on a monthly basis.

Monthly Interest Rate

The interest rate charged or earned, expressed on a monthly basis, typically used for loans or investments.