Question: Why the Canada Pension Plan will be Solvent 1.What measures have been taken to ensure the solvency of the Canada Pension Plan (CPP)? a. Reducing
Why the Canada Pension Plan will be Solvent
1.What measures have been taken to ensure the solvency of the Canada Pension Plan (CPP)?
a. Reducing benefits for all pensioners.
b. Increasing the birth rate in the country.
c. Adjusting contribution rates and benefits.
2. How does the CPP Investment Board (CPPIB) help maintain the solvency of the Canada Pension Plan? a. By focusing solely on employee contribution.
b. By investing the plan's funds globally and diversifying its portfolio.
c. By investing in crypto currency and avoiding all stock market investments.
3. What role do current workers play in funding the CPP?
a. They contribute nothing to the pension plan.
b. Their contributions make up a significant part of the funding.
c. Their contributions are only used for paying off existing debts.
4. What challenge is the CPP facing due to demographic changes in Canada?
a. An influx of young workers entering the workforce.
b. A rapidly growing economy and increasing birth rate.
c. An aging population and a decreasing birth rate.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
