If the Nominal Interest Rate Is 8 Percent and the Inflation

question 184

Multiple Choice

If the nominal interest rate is 8 percent and the inflation rate is 2 percent, the real interest rate is approximately

• A) 0.25 percent.
• B) 6 percent.
• C) 4 percent.
• D) 10 percent.

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Definitions:

Approved Charges

The amounts pre-determined by insurance providers as the maximum they will pay for a covered service or procedure.

X12 837

A standard format for electronically transmitting healthcare claim information from healthcare providers to payers, such as insurance companies.

Electronic Claim

A request for payment for healthcare services that is submitted electronically to a health insurance provider.

Coordination of Benefits

A legal principle that limits payment by insurance companies to 100% of the cost of covered expenses.