Which of the Following Is NOT a Characteristic of Defined

question 1

Multiple Choice

Which of the following is NOT a characteristic of defined benefit plans?

• A) They typically pay lump benefits.
• B) The amount of benefit is based on years of service and prior earnings.
• C) They exclude yearly rises.
• D) Funds may not be invested wisely; thus, there are not enough to cover all those eligible for them.

---

Definitions:

Equilibrium Price

The rate at which the demand for a good or service perfectly balances with its supply.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrating price in a market.

Positive Externality

A beneficial effect experienced by a third party due to a transaction or activity they were not involved in.

Property Values

The worth of real estate as determined by market conditions and the property's condition, location, and other factors.