Which of the Following Statements Is TRUE of Cash Balance

question 35

Multiple Choice

Which of the following statements is TRUE of cash balance plans?

• A) The benefit grows slowly and provides an unpredictable benefit.
• B) The employer contributes a fixed percentage of workers' income to a hypothetical account and guarantees it will grow at a fixed rate.
• C) The use of cash balance plans increases the employer's pension liability and employers therefore avoid these plans.
• D) Under this plan, an employer provides health insurance to all the family members of the workers.

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Definitions:

Parasympathetic Nervous System

The part of the autonomic nervous system that is responsible for conserving energy and promoting relaxation processes.

Elevated Heart Rate

A condition where the heart beats faster than normal, which could be due to exercise, stress, or medical conditions.

Respiration Rate

Respiration Rate is the number of breaths a person takes per minute, which is a critical vital sign indicating the health and wellbeing of an individual.

Parasympathetic Nervous System

The part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing intestinal and gland activity.