All of the Following Statements About the Medicare System Are $\bold{except}$

question 51

Multiple Choice

All of the following statements about the Medicare system are true $\bold{except}$

• A) it pays for hospital and physician bills for almost all U.S. residents over sixty-five years of  age.
• B) it helps pay for prescription drugs for those over sixty-five.
• C) because of caps on reimbursements, some seniors refuse to participate in the program.
• D) it is funded out of general government revenues.
• E) it is funded by a special tax on wages and salaries.

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Definitions:

Convertible Bond

An investment vehicle that permits conversion into a fixed number of the issuing company's equity shares at select moments over its lifespan, usually upon the decision of the person owning the bond.

Arbitrage

The practice of buying and selling equivalent assets in different markets to take advantage of a price difference.

Exercise Price

The specified price at which an option contract can be exercised, determining the buy or sell price of the asset under option.