Last visit was: 24 Apr 2026, 23:38 It is currently 24 Apr 2026, 23:38
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
bkpolymers1617
Joined: 01 Sep 2016
Last visit: 11 Dec 2017
Posts: 124
Own Kudos:
1,227
 [7]
Given Kudos: 33
GMAT 1: 690 Q49 V35
Products:
GMAT 1: 690 Q49 V35
Posts: 124
Kudos: 1,227
 [7]
3
Kudos
Add Kudos
4
Bookmarks
Bookmark this Post
avatar
nayanparikh
Joined: 08 Nov 2015
Last visit: 28 Nov 2025
Posts: 39
Own Kudos:
Given Kudos: 29
GMAT 1: 460 Q32 V22
GMAT 1: 460 Q32 V22
Posts: 39
Kudos: 67
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
rmahe11
Joined: 13 Oct 2023
Last visit: 15 Aug 2025
Posts: 110
Own Kudos:
Given Kudos: 99
Posts: 110
Kudos: 29
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
ADisHere
Joined: 31 Aug 2023
Last visit: 24 Apr 2026
Posts: 139
Own Kudos:
Given Kudos: 451
Location: India
Schools: ISB '27 ISB
GMAT Focus 1: 625 Q84 V82 DI77
Schools: ISB '27 ISB
GMAT Focus 1: 625 Q84 V82 DI77
Posts: 139
Kudos: 83
Kudos
Add Kudos
Bookmarks
Bookmark this Post
a) Money left in the medical savings accounts at the end of the year may be rolled over and spent in the next year. - The money is rolled over to next year, but what's the benefit? is their potential payment for ME maximized? we dk so X

b) Putting the money in regular savings accounts will yield more cash for employees, because the medical accounts have a lower-than-normal interest rate. - So if Savings ac has 5%, and the ME ac has only 3%, so instead of maximizing their expense by 100$ they would rather save it in savings ac and get an extra 2$ so it weakens the claim

c) Medical costs are predicted to increase more quickly than employees' salaries this year. - are predicted.. we dont know for sure! so X

d) Some employees may be getting large raises halfway through the year. okay some employees, but what about others? and how is this scenario helping to maximise their payment potential? so X

e) The medical savings accounts can be used to pay for dental or optical services. Okay that's a good perk, but still not helping to maximise their payment potential So X


bkpolymers1617
A company's medical savings account program allows employees to have a set amount deducted from each paycheck to be applied toward any medical expenses incurred throughout the year.
Employees should participate in the program as a means of maximizing their payment potential for medical expenses.

Which of the following, if true, is the best reason for employees not to participate in the program?

a) Money left in the medical savings accounts at the end of the year may be rolled over and spent in the next year.
b) Putting the money in regular savings accounts will yield more cash for employees, because the medical accounts have a lower-than-normal interest rate.
c) Medical costs are predicted to increase more quickly than employees' salaries this year.
d) Some employees may be getting large raises halfway through the year.
e) The medical savings accounts can be used to pay for dental or optical services.
Moderators:
GMAT Club Verbal Expert
7391 posts
504 posts
358 posts