20
practice examMultiple Choice

Practice Exam

Question 20 • Economics

What is one way employers get employees to participate in a 401k?

Answer
A
by requiring them to opt in if they want to participate
B
by giving them an annual pay raise
C
by giving them a signing bonus when they participate
D
by requiring them to participate unless they opt out

Explanation

Employers commonly use automatic enrollment: employees are enrolled in the 401(k) plan unless they choose to opt out. This makes participation easier than requiring each employee to sign up, as described in choice B.

AI-written and checked against the verified answer.

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