Schweser Book 2 - Section 18-20 Self Test Page 178 Question 3: If Jone’s inflation forecast is incorrect, which types of accounts are most at risk? a. Defined Benefit Plans b. Individual Investors c. Property-and-casualty insurers. Essentially the question is asking who will be most impacted if inflation rises? The answer guide on page 179 suggested B Individual Investors. I think the answer should have been also (a) defined benefit plans since those individuals would have the same income but be exposed to higher inflation.
A big thanks for using the Filed Under category for this post. I think A is referring to the plan itself, not the participant.
If that’s the level of ambiguity in the question, then that’s pure FML.
I agree, they are talking about the plan itself, not the plan benificiaries. As for ambiguity, I have some bad news for you - there will be many questions even more ambiguous than this one both in readings and on the test. You have to read the questions very carefully to understand what they are asking and answer appropriately.