Single sign-on (SSO) allows a user to log in with a single ID and password to any of several related, yet independent, software systems. This is correct because SSO enables convenient access by using one set of login credentials, enhancing both user experience and security by reducing the number of credentials users must manage and potentially expose.
The other answers are incorrect as they describe different concepts:
Automatically logging off from all systems after exiting one is known as Single Log-Out (SLO), the counterpart to SSO, not SSO itself.
Requiring a two-step verification for each system access is contrary to the purpose of SSO, which is to reduce login prompts. This describes a misapplication of multi-factor authentication (MFA).
Encrypting passwords is a general security practice for protecting credentials at rest and is not the defining function of SSO.
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What are the security benefits of Single Sign-On (SSO)?
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How does SSO improve user experience compared to traditional login methods?
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Can SSO be used in conjunction with other security measures?