16
practice testMultiple Choice

Practice Test

Question 16 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

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

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

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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