The First Step in Buying Property and Liability Insurance Is

question 18

Multiple Choice

The first step in buying property and liability insurance is to develop a(n) :

• A)list of insurance agents offering insurance.
• B)inventory of exposures to loss.
• C)statement of premiums of five different insurance companies.
• D)list of floater policies.
• E)replacement cost for your property.

---

Definitions:

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out.

Checkable Deposits

Bank account balances that can be withdrawn using checks, debit cards, or electronic transfers.

Government Securities

Financial instruments issued by a government to raise funds from the public. These can include bonds, treasury bills, and other debt instruments with a promise to pay specified sums at future dates.

Open Market Operations

Monetary policy actions where central banks buy or sell government securities in the open market to control the money supply and interest rates.