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

Question

Quizplus · Accepted Answer

If a program's benefits are funded out of current payments, it is a pay-as-you-go system. This means that the program is relying on the payments made by current participants to fund the benefits of current beneficiaries. This is in contrast to a fully funded scheme, which would have a pool of funds set aside specifically for paying out benefits.

If a Program's Benefits Are Funded Out of Current Payments,it