An Employer's Insurance Program Is Set Up So That Employees

question 24

Multiple Choice

An employer's insurance program is set up so that employees have to opt out rather than opt in. This is an example of a(n) :

• A) pricing nudge.
• B) encouragement nudge.
• C) information nudge.
• D) advantageous default option nudge.

---

Definitions:

Government Bonds

Debt securities issued by a government to support government spending and obligations, typically offering a fixed rate of return over a specified period.

Market Rate

The market rate refers to the prevailing interest rate available in the marketplace for financial products or the current price of goods and services in a competitive market.

Vault Cash

Physical currency that banks and other depository institutions hold in their vaults, used to meet customer withdrawals and other immediate needs.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintaining financial system stability.