Question

1. Which of the following statement(s) is(are) incorrect?
   I. For people age 65 and older, Medicare is a major source of medical insurance coverage
   II. Part B covers certain hospital costs and home health care
   III. Medicare does not cover all medical costs
   IV. Gaps in Medicare’s coverage are insignificant
   V. Part A covers, among other items, post-hospital skilled nursing home care, and blood

a. II and IV

b. I

c. II only

d. III and IV

e. II, III and IV

2. Which of the mutual funds should an investor purchase if he or she cannot tolerate stock market fluctuations?

		a. Growth and income
		b. Income
		c. Index
		d. Balanced
		e. Maximum capital gain

3. A whole life policy differs from a term policy in that:

		a. premium on a whole life policy increases each year
		b. no premiums are required when the insured turns age 65
		c. the rate on a whole life policy is always lower than that charged on a term policy
		d. a whole life policy accumulates cash value, whereas a term policy does not
		e. none of the above

Answer 1

Question 1. c. II only;

Part B covers certain hospital costs and home health care. This statement seems to be incorrect as Medicare Part B by and large takes care of costs for things like outpatient care, for example, specialist visits. Part B additionally covers preventive services, ambulance services, certain clinical gear, and emotional well-being inclusion.

And Part A covers the hospital costs and home health care.

Question 2. d. Balanced

Balanced funds are mutual funds that invest in both debt and equity. In such funds, diversification is done. Since they maintain a balance between both debt and equity, they provide the best risk-reward balance and help to maximise the returns on investment.

Question 3. a whole life policy accumulates cash value, whereas a term policy does not

Whole life is more convoluted than term generally, yet one definition you have to know is the cash value, which is a speculation like item combined with the protection policy.

Every month, a specific part of your premium will go into an expense conceded bank account, or the cash value of the policy. (The specific sum that goes into reserve funds is dictated by your individual policy.) The policy's cash value develops after some time.