Questions on Workplace Retirement Planning
Week 4 Quiz
Directions: Highlight the best answer to the question. Then save the quiz in Word format and submit it at the assignments location. Each question is worth 10 points.
1. What does the term "matching contribution" refer to?
a. The percentage of your pay that you put into a workplace retirement plan.
b. A contribution an employer makes to an employee's defined-contribution plan that is based on the employee's own contributions to the plan.
c. A contribution an employer makes to an employee's retirement plan that is based on the length of time the employee has been with the company.
d. An end-of-year bonus an employer makes to an employee's defined-benefit plan.
2. A 401(k) plan, 403-b plan, Thrift Savings Plan, and 457 plan are all examples of which of the following plan types?
a. Defined-contribution plans.
b. Defined-benefit plans.
c. College savings plans.
d. Taxable investment plans.
3. If your employer offers a matching contribution in the company retirement plan, what action should you take?
a. Save as much as the company is willing to match, even if the investment choices in the plan are weak.
b. Review the plan's investment choices and if they are strong, save as much as the company will match.
c. None—your employer will automatically enroll you in the retirement savings plan.
d. Save at least half of what the employer will match in your retirement plan.
4. Which of the following should you look for when evaluating mutual funds?
a. A small, back-end load.
b. A small front-end load.
c. No load and a low expense ratio.
d. A small front-end load and a low expense ratio.
5. What happens to the price of bonds when interest rates go up?
a. It goes down
b. It goes up.
c. Nothing. Bond prices are unaffected by fluctuations in interest rates.
d. It stays the same. Bond prices are determined by the market dynamics of buying and selling.
6. Which of the following should you look for when choosing a financial
Directions: Highlight the best answer to the question. Then save the quiz in Word format and submit it at the assignments location. Each question is worth 10 points.
1. What does the term "matching contribution" refer to?
a. The percentage of your pay that you put into a workplace retirement plan.
b. A contribution an employer makes to an employee's defined-contribution plan that is based on the employee's own contributions to the plan.
c. A contribution an employer makes to an employee's retirement plan that is based on the length of time the employee has been with the company.
d. An end-of-year bonus an employer makes to an employee's defined-benefit plan.
2. A 401(k) plan, 403-b plan, Thrift Savings Plan, and 457 plan are all examples of which of the following plan types?
a. Defined-contribution plans.
b. Defined-benefit plans.
c. College savings plans.
d. Taxable investment plans.
3. If your employer offers a matching contribution in the company retirement plan, what action should you take?
a. Save as much as the company is willing to match, even if the investment choices in the plan are weak.
b. Review the plan's investment choices and if they are strong, save as much as the company will match.
c. None—your employer will automatically enroll you in the retirement savings plan.
d. Save at least half of what the employer will match in your retirement plan.
4. Which of the following should you look for when evaluating mutual funds?
a. A small, back-end load.
b. A small front-end load.
c. No load and a low expense ratio.
d. A small front-end load and a low expense ratio.
5. What happens to the price of bonds when interest rates go up?
a. It goes down
b. It goes up.
c. Nothing. Bond prices are unaffected by fluctuations in interest rates.
d. It stays the same. Bond prices are determined by the market dynamics of buying and selling.
6. Which of the following should you look for when choosing a financial