The Pre-Existing Condition Insurance Plan Is a Federally Administered Part

question 15

Multiple Choice

The Pre-Existing Condition Insurance Plan is a federally administered part of the Affordable Care Act, and is designed for people with pre-existing medical conditions to obtain insurance.By offering health insurance to all U.S.citizens with pre-existing medical conditions, the Pre-Existing Condition Insurance Plan eliminates ________ for both the insurer and the insured, and eliminates ________ for the issuer of the insurance policy.

• A)the principal-agent problem; moral hazard
• B)asymmetric information; adverse selection
• C)adverse selection; the principal-agent problem
• D)moral hazard; adverse selection

Calculate liquidity ratios including the current ratio, acid-test (quick) ratio, and working capital to assess a company's short-term financial health.

Evaluate a company’s operational efficiency through inventory turnover, accounts receivable turnover, average collection period, and average sale period.

Determine a company's leverage and solvency through debt-to-equity ratio and times interest earned ratio.

Understanding of key financial ratios and their calculations.

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Definitions:

Blood Relatives

Individuals related by direct lineage or genetic connections, such as parents, siblings, and offspring.

Relatedness

The feeling or state of being connected to others, often considered a fundamental human need.

Grandfather

A parent of one's father or mother and a significant male elder in the family.

Cousin

A family member who shares one set of grandparents with you, either on your mother's or father's side.