1) The difference between a Money Purchase Plan and a Profit Sharing plan is that with the Profit Sharing Plan the employee is guaranteed to see profits in their retirement funds. This Statement is __________________ .

a) FALSE. Profit Sharing Plans constantly outperform Money Purchase Plans.

b) FALSE. With the Money Purchase Plan the contributions are required regardless of how the firm performs.

c) TRUE.

d) FALSE. There is little or no difference. They are effectively two names for the same thing.

2) Many older companies have changed from a defined-benefit plan to a percentage plus inflation plan which is a retirement plan where workers are credited with a percentage of their pay each year, plus a predetermined rate of interest. This Statement is __________________ .

a) TRUE.

b) FALSE. This defines a cash balance plan not a percentage plus inflation plan.

c) FALSE.This sounds more like a funded pension plan that a percentage plus inflation plan, which I never heard of.

d) FALSE. Companies formed or incorporated prior to 1987 are not permitted to change their retirement plans

3) An attachment to a will that alters or amends a portion of the will is called a crocodile. This statement is ______________________ .

a) TRUE.

b) FALSE An attachment to a will is called a cordex.

c) FALSE. An attachment to a will is called a codicil.

d) FALSE. An attachment to a will is called a Codex