An Advantage of a Health Savings Account Is That If

question 13

Multiple Choice

An advantage of a health savings account is that if there are funds remaining in the account at the end of the year the money:

• A)goes back to the employer, helping the employer contain costs.
• B)is forfeited.
• C)belongs to the employee.
• D)can be withdrawn and placed in the employee's retirement account.

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Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year, often associated with bonds or loans.

Effective Rate

The actual interest rate that a borrower pays or earns, taking into account the compounding of interest.

Contract Rate

The pre-agreed interest rate specified in a financial contract or loan agreement.

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between its selling price and its face value.