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Financial Literacy-Q1 And Answers

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Health Maintenance Organization (HMO) and a Preferred Provider Organization (PPO) are two types of health care insurance plans. True or False? The difference of a HMO Monthly Policy and a PPO Monthly policy is that HMO's only provide medical coverage within a specified list of networked hospitals and doctors where as a PPO lets you have more flexibility in choosing which doctors you would like however PPOs cost a lot more per month. True False - Answers-True Examine two policies of the same type (e.g. HMO or PPO, etc.). Compare "deductibles" and "insurance premiums." What usually happens to the amount of the premium (usually shown on the far right of the website in red) if the deductible is lower? (i.e. would the premium be higher or lower?) a. The Premium would also be lower b. The Premium would be a higher - Answers-b. The Premium would be a higher If a prescription costs $100 and has a $20 copay (that YOU pay), how much will the INSURANCE have left to pay as a dollar amount $ ? (Ignoring the deductible.) - Answers-$80

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FINANCIAL LITERACY-Q1 AND
ANSWERS.
What is the most important value of health insurance?

a. It pays you when you are home due to sickness
b. It limits your doctors to those listed in the insurance policy
c. It reduces the amount you pay for medical expenses
d. It pays a portion of your salary if you become disabled - Answers-c. It reduces the
amount you pay for medical expenses

According to the web page, two reasons employers offer employee benefits are? (select
2 answers)

a. It increases employee expenses
b. It increases employees taxes
c. It helps recruit good employees
d. It helps retain good employees - Answers-c. It helps recruit good employees
d. It helps retain good employees

On average, how much do employee benefits increase employee salary?

a. 1/3 or 33%
b. 3/4 or 75%
c. 1/2 or 50%
d. 1/10 or 10% - Answers-a. 1/3 or 33%

Employee benefits may save employees money by:

a. Paying medical insurance premiums for the employee
b. Reducing their income if they are unable to work
c. Increasing the cost of medical benefits
d. Raising the cost of medical prescriptions - Answers-a. Paying medical insurance
premiums for the employee

All of the following are important reasons for employees to have retirement benefits
except which reason below:

a. To provide additional retirement funding in addition to social security
b. To get a good grade in financial literacy
c. To receive matching money from the employer
d. To take advantage of the power of compound interest - Answers-b. To get a good
grade in financial literacy

,Life Insurance...

a. Pays the company you worked for after you die
b. Enhances your standard of living after you die
c. Pays people who once depended on your income
d. Pays YOU when you die - Answers-c. Pays people who once depended on your
income

Who will directly receive the money when disability benefits are received:

a. The employee (you)
b. The doctors
c. The employer (yours)
d. The insurance company - Answers-a. The employee

What is the greatest advantage of "direct deposit?"

a. It saves time so that you can work longer
b. It saves gas since you don't have to travel to the bank or credit union
c. It makes saving automatic so that you don't spend the money elsewhere first
d. It is often done without your knowledge as a surprise benefit - Answers-c. It makes
saving automatic so that you don't spend the money elsewhere first

When do you think a company is most apt to offer "education plan" benefits? (select 2
answers)

a. When you will probably NOT stay with the company
b. When your position requires LOW skills
c. When you WILL probably stay with the company
d. When your position requires HIGH skills - Answers-c. When you WILL probably stay
with the company
d. When your position requires HIGH skills

Wellness Programs benefits often include:

a. smoking cessation
b. fitness programs
c. stress reduction
d. all of the above - Answers-d. all of the above

One day in the not too distant future, you will not be covered any more by your parents'
or guardians' health care plan. Therefore from the lesson, what is the average monthly
premium of an individual health care plan that you can expect to pay when you are
older?

a. $10 to $65

,b. $75 to $270
c. $300 to $550 - Answers-b. $75 to $270

Health Maintenance Organization (HMO) and a Preferred Provider Organization (PPO)
are two types of health care insurance plans. True or False? The difference of a HMO
Monthly Policy and a PPO Monthly policy is that HMO's only provide medical coverage
within a specified list of networked hospitals and doctors where as a PPO lets you have
more flexibility in choosing which doctors you would like however PPOs cost a lot more
per month.

True
False - Answers-True

Examine two policies of the same type (e.g. HMO or PPO, etc.). Compare "deductibles"
and "insurance premiums." What usually happens to the amount of the premium
(usually shown on the far right of the website in red) if the deductible is lower? (i.e.
would the premium be higher or lower?)

a. The Premium would also be lower
b. The Premium would be a higher - Answers-b. The Premium would be a higher

If a prescription costs $100 and has a $20 copay (that YOU pay), how much will the
INSURANCE have left to pay as a dollar amount $ ? (Ignoring the deductible.) -
Answers-$80

If your insurance only co very 80% of a bill, howe much would you pay on a $1000
expense? (Ignoring the deductible.) - Answers-$200

True or False......If you were to ask your parent, guardian, or an adult about the value of
health insurance. They would probably say on of the following things regarding health
insurance:

-It's very important to have because you never know when you are going to need it.
-Health insurance is important because medical costs are extreme, and you pay much
less for your care if you have insurance.
-It is extremely valuable because it leaves you prepared for drastic situations. -
Answers-True

All new and old businesses need to take careful consideration of the future of the
business. Budgets, marketing, analyzing, problem solving, visions, goals, and analyzing
the competition are all needed in guiding your business to success and not failure. You
have probably hear the saying that If you fail to plan then you plan to fail. This new
saying holds true in the world of entrepreneurship. - Answers-lack of planning

, You believe that starting a business will give you a lot more money, avoid pestering
bosses, and have more time for your family. - Answers-you start your business for the
wrong reasons

Business owners underestimate how much money is needed to run and retain a
business and they end up being forced to close their business before even having a real
chance to succeed. They also may have had an unrealistic expectation of incoming
revenues from sales and ended up not making nearly enough profit to meet their
business expenses. - Answers-insufficient capital

Avoiding this pitfall can be obtained by carefully evaluating the success of your business
and then slowly bringing your products or services to new areas and locations. Growing
your business too fast can bring expenses faster than profits possibly resulting in
bankruptcy and business failure - Answers-overexpansion

For many successful business owners, failure is not a word in their vocabulary. To a
successful business owner setbacks are seen as merely a growing opportunity that will
help them succeed in the long run. In today's world of technology having a business
website is the only way to push forward and succeed. Advertising has changed in many
ways from billboards and magazines to advertisements with youtube, yahoo, and
google. - Answers-no website

A friend of mine in England started up a candy store or as they say in England a
sweetie shop! His business didn't take of like he had predicted. When my wife and I
heard that his business was failing we questioned why in our own minds. His
management skills and products were excellent and sought after. Finally my wife asked
where his business was located knowing England fairly well herself. He then told us that
it was in Clitheroe Northern England. My wife said that makes sense why his business
is failing. I was puzzled but she then explained to me that Clitheroe is kind of out of the
way and that there aren't a lot of people that pass through that area. - Answers-location,
location, location

You have drive, determination, patience and a positive attitude. You learn from your
mistakes. You love or like your fellowman and have a passion for giving them a service
or product - Answers-you start your business for the right reasons

After the initial setup of the business, new business owners forget to continue in doing
market research and obtaining customer data. Also, new business owners frequently
lack relevant business and management expertise in areas such as finance,
purchasing, selling, production, and hiring and managing employees. These things can
lead to business failure. - Answers-poor management

A good reason to be an entrepreneur is:

a. Have less responsibility
b. Reduce your risks

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