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Ms. Byrd has a long term disability income insurance contract and is disabled. After the 60 day waiting period, she begins receiving the $1,200 per month in benefits. Although this is less than her pre disability income of $2000 per month, she is able m to get along quite nicely. Even though she is not eligible for social security disability benefits, after 2 years the insurer tells her that it is stopping payment under the contract.
1. Why might the insurer stop payment after 2 years?
2. What might Ms. Byrd do to receive payments again?
3. How could she have prevented this problem when she was selecting a disability income policy?
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Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank holds $1 million in excess reserves and the required reserves ratio is 8 percent, what level of deposits are being held?
The purchase of a new 400-ton stamping press.
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Should special restrictions, such as using the progressive corporate tax rates, apply to controlled groups of corporations? Is there an argument against such restrictions?
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