Economics and Personal Finance Practice Exam 2025 – The All-in-One Success Guide to Master Your Test!

Question: 1 / 400

Which factor does not influence the choice of an employer-sponsored retirement plan?

Company size

Employee benefits package

Market performance of stocks

When evaluating the factors that influence the choice of an employer-sponsored retirement plan, market performance of stocks is generally considered outside the direct control of an employer. While it does play a significant role in the broader economic context and can affect employees' investment outcomes, it is not a decision-making factor for employers when determining which type of retirement plan to offer.

Employers focus on aspects that they can influence directly. Company size is important because larger companies may have more resources to provide comprehensive retirement plans or offer more diverse investment options. The employee benefits package is crucial as it defines the overall compensation strategy and can incorporate the retirement plan as a key component. Finally, employee demographics are significant since the age, income, and workforce characteristics of employees can dictate what type of retirement plan would be most beneficial or appealing for the workforce.

In summary, while market performance of stocks affects employees after the retirement plan is set, it does not play a role in the selection of which retirement plan the employer will provide.

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Employee demographics

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