Multiple Choice

3) Which of the following is true of defined benefit plans?

A.) Defined benefit plans are almost always fully funded

B.) Investors/employees do not own the account balances

C.) Defined benefit plans are often called pensions

D.) B and C

E.) All of the above

F.) None of the above

6.) __________ is demand side management through changes in interest rates.

A.) Monetary policy

B.) Fiscal policy

C.) Supply-side policy

11.) Macroeconomic risk is __________.

A.) systematic risk

B.) firm-specific risk

C.) non-diversifiable risk

D.) None of the above

12.) Which of the following is not true with regard to you taxable portfolio?

A.) It should include municipal bonds

B.) It should include low dividend investments

C.) It should include REIT investments

D.) None of the above