Whether Workers Must "Opt Into" or "Opt Out Of" a Retirement

question 52

Multiple Choice

Whether workers must "opt into" or "opt out of" a retirement savings plan ______ make a difference if workers are rational optimizers and ______ make a difference if workers' behavior exhibits inertia.

• A) would; would
• B) would not; would not
• C) would; would not
• D) would not; would

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Definitions:

Future Values

The projected amount of money or value of an investment at a specified future date, accounting for factors like interest rates and returns.

Investment 1

The strategy of apportioning capital with the expectation of generating financial returns.

Compounded Quarterly

Describes the frequency with which interest is added to the principal balance of a loan or deposit four times a year, increasing the total amount of interest earned or paid.

Maturity Value

The amount payable to the investor at the end of a fixed-term investment, including both the principal and the interest.