WEEK FIVE PARTICIPATION QUESTIONS

WEEK FIVE PARTICIPATION QUESTIONS

1. Differentiate between a defined contribution pension plan and a defined benefit pension plan.

2. Explain how the employer’s obligation differs between the two types of plans.

3. Explain how cash-basis accounting for pension plans differs from accrual-basis accounting for pension plans

4. Why is cash-basis accounting generally considered unacceptable for pension plan accounting?

5. What is the purpose of a cash flow hedge?

6. What are some examples of cash flow hedge?

7. What are the main distinctions between a traditional financial instrument and a derivative financial instrument?

8. What is “Shlomo Benartzi: Saving for Tomorrow, Tomorrow”?

ANSWER EACH QUESTION IN 200 OR MORE WORDS

USE CITATIONS AND REFERENCES