41.Social security is a _________ pension plan.
42.All but one of the following was an important result of the ERISA Act of 1974:
a.strengthen the fiduciary responsibilities of pension fund trustees.
b.increased the number of pension funds at small businesses
c.established reporting and disclosure requirements
d.provided insurance for failed pension funds.
43.The difference between an insured versus a noninsured pension plan is
a.the insured plan is insured under the Pension Benefit Guaranty Corporation, while the noninsured is not.
b.the insured plan is a government pension fund; the noninsured is in the private sector.
c.the insured plan obligations are issued by a life insurance company with promises to pay specific amounts in the future, while the noninsured are managed by a trustee with no guarantee of amounts distributed in the future.
d.the employer of the insured guarantees payments, but not so in the case of the uninsured.
44. Cootie, a 65 year-old disable retiree, has saved $1,250,000. He expects he will survive another 10 years and wishes to receive 10 annual annuity payments, beginning in one year later. If the interest rate is 5.75%, how much does he can expect to receive per year?
45. In the U.S., the major regulator of insurance firms is the
a.State insurance regulator
d.Federal Reserve Banks
46.John will retire seven years later and would like to have a 10-payment annual annuity that will have its first payment at the moment when he retires. If the payment amount is $50,000 a year and the interest rate is 12%, what is the fair value should be paid today for this annuity?