PERSONAL FINANCE CHAPTER 9
EXAM QUESTIONS AND
COMPLETE SOLUTIONS GRADED
A+
Your Exam Plug
, How can Armand increase his human capital? - Answer: Go back to college or engage in healthy
behavior.
Blakely and Marty have been dating for 3 years. Marty is interested in going skydiving. Marty's tolerance
for extreme activities is very high. Blakely's risk tolerance is a lot lower. When discussing the activity,
Marty tells Blakely that they will be in a secure plane and that the parachutes they will use have been
hand-packed and checked by three people. In the end, Marty makes the jump but Blakely does not. -
Answer: avoid the risk.
A problem with living an unhealthy lifestyle is that the: - Answer: severity and frequency of future risks
increases over time.
The number-one determinant of someone's health is _____________________, followed by
_____________. - Answer: health behavior; genetic disposition.
If Nicole buys health insurance, she is effectively: - Answer: transferring the risk of high health-related
expenses to an insurance company.
For young adults, average health expenses are minimal but they may include: - Answer: visiting a doctor
or emergency room because of an injury or accident or getting a prescription for medicine.
A government-supported health insurance program that is designed to provide coverage to those
currently living in poverty is called: - Answer: Medicaid
Which of the following statements is true about health insurance? - Answer: An insurance deductible is
the amount that the insured individual must pay before the health insurance company will pay any
money.
Charles has a health insurance policy with the following provisions: $500 deductible, $40 copay, and
80/20 coinsurance provision. If Charles has an accident that costs $2865 in medical expenses, how much
will he have to pay out of pocket? - Answer: $1005.
Which of the following is not a qualified medical expense within a flexible spending account? - Answer:
Long-term care premiums.
EXAM QUESTIONS AND
COMPLETE SOLUTIONS GRADED
A+
Your Exam Plug
, How can Armand increase his human capital? - Answer: Go back to college or engage in healthy
behavior.
Blakely and Marty have been dating for 3 years. Marty is interested in going skydiving. Marty's tolerance
for extreme activities is very high. Blakely's risk tolerance is a lot lower. When discussing the activity,
Marty tells Blakely that they will be in a secure plane and that the parachutes they will use have been
hand-packed and checked by three people. In the end, Marty makes the jump but Blakely does not. -
Answer: avoid the risk.
A problem with living an unhealthy lifestyle is that the: - Answer: severity and frequency of future risks
increases over time.
The number-one determinant of someone's health is _____________________, followed by
_____________. - Answer: health behavior; genetic disposition.
If Nicole buys health insurance, she is effectively: - Answer: transferring the risk of high health-related
expenses to an insurance company.
For young adults, average health expenses are minimal but they may include: - Answer: visiting a doctor
or emergency room because of an injury or accident or getting a prescription for medicine.
A government-supported health insurance program that is designed to provide coverage to those
currently living in poverty is called: - Answer: Medicaid
Which of the following statements is true about health insurance? - Answer: An insurance deductible is
the amount that the insured individual must pay before the health insurance company will pay any
money.
Charles has a health insurance policy with the following provisions: $500 deductible, $40 copay, and
80/20 coinsurance provision. If Charles has an accident that costs $2865 in medical expenses, how much
will he have to pay out of pocket? - Answer: $1005.
Which of the following is not a qualified medical expense within a flexible spending account? - Answer:
Long-term care premiums.
