Strange Defined Contribution question understand, statements, following, regarding

sdada

Hi,
Please refer to the following question.
Which of the following statements are correct regarding a participant-directed defined contribution plan?
Statement 1: The plan should be responsible for establishing and revising the interest rate for plan loans to participants.
Statement 2: The plan should provide criteria for manager/fund selection, termination and replacement.
According to Schweser notes both of them are correct, which I can’t believe.
Please help me understand them.
Thanks,
MG.