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Suppose That,for the Coming Year,a Family Has Calculated Its Expected

question 144

Multiple Choice

Suppose that,for the coming year,a family has calculated its expected value for car repairs to be $3,000.The family decides to buy a car insurance policy that would cover such claims.This insurance policy would cost a total of $3,000 for the household.This insurance policy is:


Definitions:

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.

Interest Rates

The cost of borrowing money or the return on invested capital, expressed as a percentage of the principal amount.

Investment

The procedure or operation of assigning financial assets with the intention of achieving a revenue or profit.

Investment

The action or process of investing money for profit or material result.

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