In an Unfunded Pension System Where Current Contributions Are Paid

question 15

Multiple Choice

In an unfunded pension system where current contributions are paid out to current beneficiaries,the total amount of funds available to invest _____ and the interest rate _____.

• A)falls;falls
• B)rises;rises
• C)falls;rises
• D)rises;falls

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Definitions:

Assumption

An accepted fact or statement taken for granted without proof.

Evolutionary Perspective

A theoretical approach in various fields that examines the evolutionary basis of behavior and traits.

Bonding Process

The development of a close, interpersonal relationship between individuals through emotional attachment, trust, and mutual understanding.

Survival

The ability to continue living or existing, especially under adverse or unusual conditions.