If a program's benefits are funded by interest earned on accumulated payments,it is which type of system?
A)An investment system
B)A fully funded scheme
C)An interest scheme
D)A pay-as-you-go system
E)An endowed system

Question

Quizplus · Accepted Answer

A fully funded scheme is characterized by accumulating payments (often in the form of contributions or premiums) and then using the interest earned on these accumulations to fund the benefits. This contrasts with pay-as-you-go systems, where current contributions are used to pay current benefits.

If a Program's Benefits Are Funded by Interest Earned on Accumulated