A Deductible That Must Be Satisfied After the Benefits of a Basic

question 41

Multiple Choice

A deductible that must be satisfied after the benefits of a basic medical expense plan are exhausted and before supplemental major medical benefits are payable is called a(n)

• A)calendar-year deductible.
• B)prospective deductible.
• C)straight deductible.
• D)corridor deductible.

Understand the concept of compound interest with different compounding periods (monthly, semi-annually, quarterly).

Determine the size and timing of payments to fulfill financial obligations.

Calculate the future value of multiple cash flows with annual compound interest.

Determine the future value of investments with changing interest rates and compounding periods.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and securities, used to fund a business or generate wealth.

Diminishing Marginal Returns

The principle that as additional units of a factor of production are added to a fixed amount of other factors, the increase in output will eventually decrease.

Quantity of Capital

The total volume of physical assets, such as machinery and buildings, used in the production of goods and services.

Output Per Worker

The quantity of goods or services produced divided by the number of workers, indicating the productivity level of labor within an economy.