Which of the Following NOT True of Social Security

question 34

Multiple Choice

Which of the following NOT true of Social Security?

• A)It provides health insurance through Medicare.
• B)Employees and employers both contribute 6.2 percent of employee earnings.
• C)Employees can earn up to 40 credits a year.
• D)Those born in 1960 and later don't receive full benefits until they turn 67.
• E)Dependents of workers who have died are eligible.

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Definitions:

Pure Discount

A financial instrument, such as a zero-coupon bond, that is sold at a discount and pays no interest, only returning the face value at maturity.

Interest-Only

A debt repayment strategy where the borrower pays only the interest on the principal balance, with the principal balance unchanged.

Pure Discount Loan

A loan where the borrower receives a sum of money upfront and repays a higher amount at the end of the loan period, effectively paying interest by the difference.

Lump Sum Payment

An isolated financial disbursement occurring once, instead of being divided into multiple payments over a duration.