PT Ch08

PT Ch08 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A study by Zion and Carcache of Credit Suisse First Boston estimated that if the companies plans with the plans' actual performance, the companies' aggregate reported earnings would have ________. 1) A) declined. B) increased greatly. C) increased moderately. D) remained the same. 2) To ensure that a pension plan is in compliance with ________, periodic reporting and disclosure statements must be filed with these government agencies. 2) A) PBGC B) a 401 - K plan C) ERISA D) IRS regulations 3) In a defined - contribution plan, the amount contributed is typically ________. 3) A) either a percentage of the employee's salary and/or a percentage of the employer's profits. B) a percentage of the employee's salary. C) a percentage of the employee's tenure. D) a percentage of the employee's salary. 4) There are several fundamental differences between defined - benefit plans and defined - contribution plans. In the defined - benefit plan, the plan sponsor does which of the following? 4) A) The sponsor does not make the investment choices B) The sponsor does not guarantee the retirement benefit C) The sponsor bears the investment risk if the investments do not earn enough to fund the guaranteed retirement benefits. D) The sponsor bears the investment risk if the investments earn enough to fund the guaranteed retirement benefits. 5) Which of the below statements is TRUE? 5) A) A federal agency, the Pension Benefit Guaranty Corporation (PBGC) does not insure the vested benefits of participants. B) Defined benefit plans that are guaranteed by life insurance products are called insured benefit plans. C) A plan sponsor establishing a defined
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This document was uploaded on 01/24/2012.

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PT Ch08 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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