How do defined-contribution plans differ from defined-benefit plans?
What will be an ideal response?
In a defined contribution plan, the firm invests contributions for the employees, who own the value of the funds in the plan. If the pension plan's investments are profitable, pension income during retirement will be high; if the pension plan's investments are not profitable, retirement income will be low. In a defined benefit plan, the firm promises employees a particular dollar benefit payment, based on each employee's earnings and years of service.
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Member commercial banks have purchased stock in their district Fed banks; the dividend paid by that stock is limited by law to ________ percent annually
A) four B) five C) six D) eight
____________ is the process of making a choice between two or more alternatives
a. Bargaining b. Trading c. Decision making d. Goal setting