Quiz: Funding Short fall

statements, regarding, following

Which of the following statements regarding a funding shortfall is most accurate? A funding shortfall is when the:

A) present value of pension assets is less than the present value of pension liabilities.
B) pension assets on the balance sheet are less than the pension liabilities on the balance sheet.
C) market value of pension assets is less than the market value of pension liabilities.

I chose A, but it is wrong....

Can some guru explain why it is not Present value?

bpdulog

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发表于 2011-7-11 20:02 | 只看该作者

Can't get any nitpickier than this:

I mean that the current marked-to-market value of the pension assets is less than the current marked-to-market value of the pension liabilities.
(Level III Volume 2 Behavioral Finance, Individual Investors, and Institutional Investors , 4th Edition. Pearson Learning Solutions 470).
<vbk:9780558655952#page(470)>

There's no official definition, but that is how Mr. Merton describes it.

NO EXCUSES

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Chuckrox

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发表于 2011-7-11 20:02 | 只看该作者

bpdulog Wrote:
-------------------------------------------------------
> Can't get any nitpickier than this:
>
> I mean that the current marked-to-market value of
> the pension assets is less than the current
> marked-to-market value of the pension
> liabilities.
> (Level III Volume 2 Behavioral Finance, Individual
> Investors, and Institutional Investors , 4th
> Edition. Pearson Learning Solutions 470).
>
>
> There's no official definition, but that is how
> Mr. Merton describes it.

bpdulog, thanks. Curious, how can you do search so quickly?
I dont know how to search in VBK effectively....

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bkballa