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A(n) ________ Plan Is a Type of Defined-Benefit Pension Plan

Question 12

Multiple Choice

A(n) ________ plan is a type of defined-benefit pension plan under which an employer credits a participant's account with a set percentage of his or her yearly compensation plus interest. The investment performance of the fund does not affect the final benefits to be received by the participant upon retirement.


A) employee stock ownership
B) cash balance
C) tax-deferred 401(k)
D) fixed contribution

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