Final answer:
Both statements regarding the Social Security system are correct. To be 'fully insured,' a worker must have earned enough quarters of coverage based on their work history, and earning a certain amount of money will credit the worker with a quarter of coverage for that year.
Step-by-step explanation:
To assess the statements concerning the Social Security system, let's examine each one:
Statement I: To qualify for retirement benefits, a worker must be "fully insured," which means that a worker has earned a certain number of quarters of coverage under the Social Security system. This statement is correct. To be "fully insured" and qualify for retirement benefits, a worker must accumulate a certain number of credits, based on their work history. Workers generally need 40 credits, equivalent to 10 years of work, to qualify for retirement benefits.
Statement II: Earning a designated amount of money, regardless of when it was earned during the year, will credit the worker with a quarter of coverage for that year. This statement is also correct. In 2022, for example, a worker earns one credit for each $1,510 of earnings and can earn up to four credits per year. The timing of these earnings in the year does not matter as long as the total reaches the required amount for credit.
Therefore, the correct answer is (3) Both Statement I and Statement II.