A Characteristic of a Health Savings Account That Distinguishes It

question 40

Multiple Choice

A characteristic of a health savings account that distinguishes it from other types of health care coverage is that it

• A) is not tax-deferred.
• B) allows people to save money for medical expenses in a tax-deferred account.
• C) covers only emergency procedures.
• D) provides unlimited access to routine medical services (such as office visits) and minor medical tests and procedures (such as blood tests and X-rays) at no cost.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, important in the evaluation of investment opportunities.

Monthly Payments

Regular payments made over a period of time, often associated with loans or leases.

Financing

The act of financing commercial operations, procuring items, or placing capital into investments.

Loan Payment

A payment made by a borrower to a lender, consisting of both principal and interest, on a borrowed sum.