Question

How does a pension fund act as an investor?
a. The fund lends money to those who are also investors in it.
b. The company invests the money collected from employers and/or employees.
c. The company uses money collected from the employees as a fund to finance the company.
d. The fund uses its own money to invest, not the money that is invested in it.

Answer 1

A pension fun act as an investor by (B) The company invests the money collected from employers and/or employees.

Answer 2

Answer:

b. The company invests the money collected from employers and/or employees.

Explanation:

Pension funds are funds in which people pay for a plan to have future retirement income. These funds use the money paid by employees and/or employers to invest in different types of assets. According to this, a pension fund act as an investor as the company invests the money collected from employers and/or employees.