84
QuizMultiple Choice

Planning for the Cost of College — Unit test

Question 84 • Personal Finance - SC 26-27 (For Credit)

How does an employer's presentation of retirement savings options affect employees' decisions to save?

Answer
A
by automatically enrolling employees to tap into their default bias
B
by assigning employees to different saving courses in the retirement plan
C
by offering various saving courses in the retirement plan
D
by making the plan more complex to get employees more involved

Explanation

Automatically enrolling employees uses default bias: many people stick with the option already selected for them. As a result, employees are more likely to participate in the retirement plan and save. The correct choice is “by automatically enrolling employees to tap into their default bias.”

AI-written and checked against the verified answer.

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