Question

1. what is the purpose of a credit score? *

a) to determine your eligibility for a loan or credit card

b) to increase your income

c) to invest in real estate

d) to pay off debts

1. which statement correctly explains insurance premiums, deductibles, * 1 poin

and out of pocket max?

a) you pay a monthly premium for your health insurance. you pay for health services
until you meet your deductible. once you meet your out - of - pocket maximum; your
insurance pays the rest of your health care costs for that year.

b) you pay a monthly deductible for your health insurance. you and your health
insurance company share health care costs by paying separate premium costs.
once you meet your out - of - pocket maximum, your insurance company pays your
health care costs except for your copays.

c) you pay a monthly premium for your health insurance. your insurance will cover a
specific percentage of your health insurance costs up to an out - of - pocket maximum.
once you have reached your maximum limit, your only out - of - pocket expense is your
deductible.

d) you pay a monthly deductible for your health insurance. when you use your health
insurance, you will pay your premium out - of - pocket. once you meet your out - of-
pocket maximum for the year, your insurance will pay the remaining amount of your
health care costs.

Explanation:

Question 13

A credit score is a numerical representation of a person's creditworthiness. Lenders (like banks for loans or credit card companies) use it to assess the risk of lending money or providing credit. Option a is correct because it relates to determining eligibility for loans or credit cards. Option b is incorrect as a credit score doesn't directly increase income. Option c is incorrect as a credit score isn't for investing in real estate. Option d is incorrect as a credit score doesn't pay off debts.

• Option A: Premiums are monthly payments for insurance. You pay for services until you meet the deductible (the amount you pay before insurance starts covering more). Once the out - of - pocket max (the most you'll pay in a year) is met, insurance pays the rest. This is correct.
• Option B: Premiums are monthly, not deductibles. Also, the description of sharing costs and copays is incorrect.
• Option C: The description of out - of - pocket expense after max limit is wrong.
• Option D: Premiums are monthly, not deductibles, and the description of paying premium out - of - pocket when using insurance is incorrect.

Answer:

a) To determine your eligibility for a loan or credit card

Question 14