Question

23 multiple choice 4 points
why do responsible consumers use credit or credit cards?
to make minor purchases without using cash
to obtain the highest amount of points on a mortgage
to avoid mortgage insurance when buying a home
to establish a good credit score for getting a loan
24 multiple choice 4 points
in the context of health insurance, what is the purpose of a deductible?
it is the percentage of medical costs that the insured must pay after reaching a certain limit.
it is the maximum amount the insured has to pay out - of - pocket for covered services.
it is the initial amount the insured must pay before the insurance coverage begins.
it is the amount the insurance company pays for each medical service received by the insured.
25 multiple choice 4 points
why is it important for businesses to conduct risk assessments?
to minimize production costs
to maximize profit margins
to increase advertising budgets
to identify potential threats

Explanation:

23

Responsible consumers use credit or credit cards to build a positive credit history. A good credit score is crucial for getting loans (e.g., mortgages, car loans) at favorable terms. Minor purchases without cash is a convenience but not the main reason for responsible use. Mortgage points and avoiding mortgage insurance are related to mortgages specifically, not the general use of credit/credit cards for building credit.

• The percentage of medical costs after a limit is coinsurance.
• The maximum out - of - pocket is the out - of - pocket maximum.
• The amount the insurance company pays is the benefit payment.
• A deductible is the initial amount the insured pays before insurance coverage kicks in.

• Minimizing production costs is more about cost - control measures (e.g., supply chain optimization).
• Maximizing profit margins is related to revenue and cost strategies (e.g., pricing, cost - cutting).
• Increasing advertising budgets is a marketing decision.
• Risk assessments are about identifying potential threats (e.g., market risks, operational risks, financial risks) to a business.

Answer:

to establish a good credit score for getting a loan

24