Which of the following statements about tax-deferred retirement plans in the U.S.is true?
I.Women,on average,receive lower employment-based retirement income than men.
II.One way to hedge against inflation is to invest lump-sum pension distributions in fixed-income investments.

Question

Quizplus · Accepted Answer

Statement I is true, as studies have shown that women tend to have lower earnings and work fewer years than men, leading to lower retirement income. Statement II is false, as fixed-income investments tend to have lower returns than equities in the long run, and may not keep up with inflation. Instead, investors may consider inflation-protected securities or a diversified portfolio to hedge against inflation.

Which of the Following Statements About Tax-Deferred Retirement Plans in the U.S.is