Coinsurance rate for Policy C is 20% while Coinsurance rate for policy D is 25%. Which...
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The coinsurance rate depicts the percentage of the insurance cover that is paid by the beneficiary after paying the deductible. So, when the coinsurance rate is 20%, 20% of the insurance costs are paid by the beneficiary and when it is 25% , 25% of the costs are paid by him. When the amount of coinsurance as a percentage of the total insurance amount is higher, the stake of the beneficiary in averting the disaster is higher. This means that he will be more careful to take the necessary steps to not make insurance necessary. Thus, higher coinsurance payments reduce moral hazard problem. Therefore, policy D with a higher percentage of coinsurance (25% against 20% for C) , will provide a lower moral hazard.
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Coinsurance rate for Policy C is 20% while Coinsurance rate for
policy D is 25%. Which...
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property...
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property and casualty 56. The problem of occurs when those most likely to get large insurance payoffs are the ones who want to purchase insurance the most. (a) asymmetric information (b) moral hazard (c) adverse selection (d) fraudulent behavior 57. To prevent adverse selection, health and life insurance companies may do all the following except (a) charge higher premiums to people with certain pre- existing...
Which one of the following is TRUE about the concept of "coinsurance": For property insurance, the main purpose of...
Which one of the following is TRUE about the concept of "coinsurance": For property insurance, the main purpose of coinsurance is to get policyholders to share costs with insurers after the deductible is reached. For health insurance, the main purpose of coinsurance is punish policyholders for under insuring. For health insurance, coinsurance is used as an incentive for policyholders to use in-network providers. None of the above are TRUE. 26. а. b. с. d. 27. Which one of the following...
Why is QE a controversial monetary policy tool. A. It may lead to excessive inflation.B. By...
Why is QE a controversial monetary policy tool. A. It may lead to excessive inflation.B. By artificially propping up asset prices, it benefits wealthy households the most. C. Households on a fixed income (e.g., retirees) are worse-off because historically low interest rates make it more difficult to live off of their savings. D. It creates a moral hazard problem as firms may be encouraged to take on riskier assets in the future feeling they would be "bailed-out" if anything goes...
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should...
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should it do? a. Increase the reserve requirement ratio. b. Buy bonds on the open market. c. Sell bonds on the open market. d. Lower taxes. e. Increase the discount rate. The interest rate at which banks can borrow funds from the Fed is known as… a. the federal funds rate. b. the discount rate. c. the prime rate. d. the real interest rate. e....
When The Fed initiates contractionary policy, which of the following multiple events will occur? A. Real...
When The Fed initiates contractionary policy, which of the following multiple events will occur? A. Real interest rates will decrease, bank deposits will increase and the value of bank loans will increase. B. Real interest rates will increase, stock prices will decrease and the volume of bank loans will decrease. C. Real interest rates will increase, stock prices will increase and moral hazard will increase D. Real interest rates will decrease, stock prices will increase and the dollar will appreciate...
please answer these questions carefully ASAP AND MAKE SURE ITS CORRECT D Question 23 1 pts...
please answer these questions carefully ASAP AND MAKE SURE ITS
CORRECT
D Question 23 1 pts Which of the following is a type of cost-sharing in insurance? Please choose all the apply co-payment deductible coinsurance None of the listed D Question 24 1 pts Cost-sharing increases moral hazard. True False D Question 25 Which of the following is a description of self funded programs (self funded health plans)? Please choose all that apply designed initially for large companies that have...
A homeowners' policy will typically pay up to $500 per plant that is damaged by a...
A homeowners' policy will typically pay up to $500 per plant that is damaged by a covered peril. This is an example of: an aggregate dollar limit an open perils dollar limit C. a specific dollar limit a mixed dollar limit none of the above e. You purchase an annuity for which you will make one payment of $15,000 on your 50 birthday. The annuity will start paying you $400 a month on your 67" birthday until you die. What...
1) Present value calculations: A) are appropriate for investments in the same time period B) are...
1) Present value calculations: A) are appropriate for investments in the same time period B) are accurate only in a low-rate environment C) provide comparisons for investments when inflation is known D) provide a common reference for measuring investments at different maturities 2) Compounding refers to: A) the calculation of interest rates after allowing for the effect of taxes B) the process of earning interest on interest of an investment C) the repayment of both interest and principal at the...
18) A substantial decrease in the aggregate price level that reduces firms' net worth may stall...
18) A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called A) debt deflation. B) moral hazard. C) insolvency. D) illiquidity. 19) There are two ways in which the Fed can provide additional reserves to the banking system: it can government bonds or it can discount loans to commercial banks. A) sell; extend B) sell; call in C) purchase; extend D) purchase; call in 20) Which...
Data on the unemployment rate for workers aged 16–19 and for workers aged 20 and over...
Data on the unemployment rate for workers aged 16–19 and for workers aged 20 and over is listed in the table below. How do they differ? Unemployment rate (percent) Both sexes, 16–19 years 13.9 Men, 20 years and over 3.9 Women, 20 years and over 3.6 Source: The Bureau of Labor Statistics (www.bls.gov), January 2018. Workers aged 16–19 have unemployment rates that are (Click to select) the same as higher than lower than adult (above 20) unemployment rates. The reason for this is younger workers...
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property and casualty 56. The problem of occurs when those most likely to get large insurance payoffs are the ones who want to purchase insurance the most. (a) asymmetric information (b) moral hazard (c) adverse selection (d) fraudulent behavior 57. To prevent adverse selection, health and life insurance companies may do all the following except (a) charge higher premiums to people with certain pre- existing...
Which one of the following is TRUE about the concept of "coinsurance": For property insurance, the main purpose of coinsurance is to get policyholders to share costs with insurers after the deductible is reached. For health insurance, the main purpose of coinsurance is punish policyholders for under insuring. For health insurance, coinsurance is used as an incentive for policyholders to use in-network providers. None of the above are TRUE. 26. а. b. с. d. 27. Which one of the following...
please answer these questions carefully ASAP AND MAKE SURE ITS
CORRECT
D Question 23 1 pts Which of the following is a type of cost-sharing in insurance? Please choose all the apply co-payment deductible coinsurance None of the listed D Question 24 1 pts Cost-sharing increases moral hazard. True False D Question 25 Which of the following is a description of self funded programs (self funded health plans)? Please choose all that apply designed initially for large companies that have...
A homeowners' policy will typically pay up to $500 per plant that is damaged by a covered peril. This is an example of: an aggregate dollar limit an open perils dollar limit C. a specific dollar limit a mixed dollar limit none of the above e. You purchase an annuity for which you will make one payment of $15,000 on your 50 birthday. The annuity will start paying you $400 a month on your 67" birthday until you die. What...
1) Present value calculations: A) are appropriate for investments in the same time period B) are accurate only in a low-rate environment C) provide comparisons for investments when inflation is known D) provide a common reference for measuring investments at different maturities 2) Compounding refers to: A) the calculation of interest rates after allowing for the effect of taxes B) the process of earning interest on interest of an investment C) the repayment of both interest and principal at the...
18) A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called A) debt deflation. B) moral hazard. C) insolvency. D) illiquidity. 19) There are two ways in which the Fed can provide additional reserves to the banking system: it can government bonds or it can discount loans to commercial banks. A) sell; extend B) sell; call in C) purchase; extend D) purchase; call in 20) Which...
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