A defined-benefit plan ________.
A)has borrowed from the public
B)has purchased foreign currency
C)sets future income payments in advance
D)has agreed to make periodic payments for a specific period of time

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A defined-benefit plan is a retirement plan in which the employer promises to pay a specific benefit to the employee upon retirement. This benefit is typically based on a formula that takes into account years of service and salary. The plan sets the future income payments in advance, which is different from a defined-contribution plan where the amount of the benefit is not predetermined but depends on the amount contributed and the investment performance. A defined-benefit plan does not borrow from the public or purchase foreign currency, and it is not limited to a specific period of time since the payments continue throughout the retiree's lifetime.

A Defined-Benefit Plan ________