11) In a(n) __________ insurance policy, the savings component pays a money market rate of interest that changes with market conditions. A) whole B) term C) universal D) variable 12) A type of life insurance with separate pure-insurance and savings components is A) whole life insurance. B) universal life insurance. C) term life insurance. D) group life insurance. 13) In a(n) __________ insurance policy, there is no savings component. A) whole B) term C) universal D) variable 14) An employee who retains earned pension benefits after leaving a job has a pension plan that is A) whole life. B) guaranteed. C) vested. D) funded. 15) Until the 1980s most private pension plans were “defined __________” plans under which the periodic employer payment into the plan was __________. A) benefit; variable B) benefit; preset C) contribution; variable D) contribution; preset 16) Pension plans in which employer contributions are set by the plan and benefits depend on the performance of the assets in the plan is called a A) defined benefit plan. B) defined contribution plan. C) a fully vested plan. D) an unfunded plan. 17) Pension plans in which employee benefits are set by the plan and the employer contributions are adjusted to meet those benefits is called a A) defined benefit plan. B) defined contribution plan. C) a fully vested plan. D) an unfunded plan. 18) A fully funded pension liability is one in which A) the Pension Benefit Guaranty Corporation insures full benefit payments. B) enough money has been set aside to ensure that the promised pension can be paid out after allowing for interest payments. C) the yield on the pension fund is equal to the inflation rate. D) corporation pension contributions are equal to employee contributions. 19) Suppose a new employee is promised a pension payment of $8000 in the twenty-fourth year after joining the firm. The current pension contribution is $1200 a year. Assuming a six percent rate of return, their pension plan is said to be A) fully funded. B) partly funded. C) unfunded. D) fully vested. 20) Suppose a new employee is promised a pension payment of $8000 in the twenty-fourth year after joining the firm. The current pension contribution of $1200 a year. Assuming an eight percent rate of return, this pension plan is said to be A) fully funded. B) partly funded. C) unfunded. D) fully vested.