Download Questions in the American Life Panel (online appendix) Financial

Questions in the American Life Panel (online appendix)
Financial literacy questions
Correct answers are marked with a star.
1. (Numeracy) Suppose you had $100 in a savings account and the interest rate was 2
percent per year. After 5 years, how much do you think you would have in the account if
you left the money to grow: more than $102, exactly $102, or less than $102?
 More than $102*
 Exactly $102
 Less than $102
 Don't know
2. (Inflation) Imagine that the interest rate on your savings account was 1 percent per year
and inflation was 2 percent per year. After 1 year, would you be able to buy more than,
exactly the same as, or less than today with the money in this account?
 More than today
 Exactly the same as today
 Less than today*
 Don't know
3. (Risk) Do you think that the following statement is true or false: “Buying a single
company stock usually provides a safer return than a stock mutual fund.”
 True
 False*
 Don't know
Health insurance literacy questions
Correct answers are marked with a star.
1. If an insurance policy has a higher deductible the premium should be lower, everything
else equal.
 True*
 False
 Don't know
2. If you visit a doctor who is not part of your insurer's network you will have to pay more.
 True*
 False
 Don't know
3. Generic prescription drugs cost the patient more than brand name drugs.
 True
 False*
 Don't know
4. Which type of insurer places greater restrictions on the patient's choices of the providers
they see?
 HMO*
 PPO
 They are the same (HMO equals PPO in terms of choice of providers)
 Don't know
5. Which of the following best describes a deductible?
 A small amount that patients must pay each time they visit a doctor
 The amount patients must pay during a year before their insurance will pay for
care*
 The price policy holders must pay for insurance
 Don't know
6. You go to the doctor and the bill for your visit is $100. You have to pay a co-insurance of
20% for all doctor visits. How much will you be expected to pay for this visit?
 $0
 $ 20*
 $ 80
 Don't know
7. You go to the doctor and the bill for your visit is $100. You have a co-pay of $15 for all
doctor visits. How much will you be expected to pay for this visit?
 $0
 $ 15*
 $ 85
 Don't know
Risk aversion question
How do you see yourself: are you generally a person who is fully prepared to take risks or do
you try to avoid risks? Please rate your willingness to take risks on the scale below where the
value 0 means: “not at all willing to take risks” and the value 10 means: “ very willing to take
risks”. With values between 0 and 10 you can express where you lie between these two
extremes.
0 Not at all willing to take risks
1
(…)
9
10 Very willing to take risks