A:

The reason why ERISA qualified plans should have an investment policy statement is to:

a. list guidelines for choosing an investment advisor for the plan.
b. list guidelines on how plan investments should be chosen.
c. list guidelines for vesting and eligibility requirements.
d. protect plan participants from investment losses.


The correct answer is "b": the investment policy statement should outline the investment objectives, preferred investment types, expected returns, risk tolerance, etc.

Hot Definitions
  1. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  2. Promissory Note

    A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on ...
  3. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Absolute Advantage

    The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost ...
  6. Nonce

    Nonce is a number added to a hashed block, that, when rehashed, meets the difficulty level restrictions.
Trading Center