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© 2014 Pearson Canada Inc.#
In a defined-contribution plan future benefits ____.
A) are set in advance
B) are registered with the federal regulatory authority
C) are determined by the contributions into the plan and their earnings
D) are government administered
Answer: C
Diff: 1 Type: MC Page Ref: 278
Skill: Recall
Objective List: 12.2 Understand the key aspects of pension funds
A defined-contribution plan ____.
A) borrows from the public
B) purchases foreign currency
C) sets future income payments in advance
D) makes periodic payments for a specific period of time
Answer: D
Diff: 1 Type: MC Page Ref: 278
Skill: Recall
Objective List: 12.2 Understand the key aspects of pension funds
The primary assets of a pension fund are ____.
A) money market instruments
B) bonds, stock and long term mortgages
C) consumer and business loans
D) bonds, stock and short term mortgages
Answer: B
Diff: 1 Type: MC Page Ref: 278
Skill: Recall
Objective List: 12.2 Understand the key aspects of pension funds
Private pension plans ____.
A) are different from RRSPs
B) cannot be converted to annuity or a RRIF on retirement
C) are voluntary, employer-sponsored plans
D) are the same as RRSPs
Answer: C
Diff: 1 Type: MC Page Ref: 279
Skill: Recall
Objective List: 12.2 Understand the key aspects of pension funds