Related to the Economics in Practice on P

question 58

Multiple Choice

Related to the Economics in Practice on p. 146: A recent study by economists at Yale University and the University of Chicago suggests that changing retirement plan enrollment options from a(n) ________ system to a(n) ________ system increased pension plan enrollment after three months of work from 65 percent of workers to 98 percent of workers.

• A) "opt-in"; "opt-out"
• B) "opt-out"; "opt-in"
• C) voluntary; mandatory
• D) mandatory; voluntary

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Definitions:

Commercial Banks

Financial institutions that provide loans, accept deposits, and offer basic financial products like savings accounts to the public.

Financial Matters

Issues or activities related to the management, investment, and control of money and assets.

Venture Capital Fund

A fund that invests in high-growth companies in exchange for equity, or ownership stakes, typically in early-stage companies.

Private Placement

The offering of securities to a relatively small number of select investors as a way of raising capital.