In Addition to Covering the Costs of Unpredictable Events,health Insurance

question 161

Multiple Choice

In addition to covering the costs of unpredictable events,health insurance typically covers many planned expenses,such as routine checkups,annual physicals,and the cost of vaccinations.because of this,health insurance

• A) discourages overuse of health care services.
• B) encourages overuse of health care services.
• C) generates an efficient quantity of health care services.
• D) is not accepted by most doctors and hospitals.

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Definitions:

Interest Rate

The cost, represented as a fraction of the principal, imposed by a creditor on a debtor for the borrowing of assets.

Processing

The action of performing a series of mechanical or chemical operations on something in order to change or preserve it.

Clearing

The process of reconciling purchases and sales of various options, futures, or securities, and the direct transfer of funds from one financial institution to another.

Net Float

The difference between checks written against and deposited in an account, before those checks have been cleared and settled.