Your Home Insurance Provides for Replacement Value for Personal Property

question 51

Multiple Choice

Your home insurance provides for replacement value for personal property losses.A television is stolen.It cost $1,000 two years ago and has an expected life of 5 years.A comparable television costs $500 today.What amount will the insurance company pay?

• A)$100
• B)$150
• C)$200
• D)$350
• E)$500

---

Definitions:

Trades

The act of buying, selling, or exchanging financial instruments, commodities, or other tangible or intangible items between parties.

Dividends

Payments made by a corporation to its shareholders, often derived from the company's profits, and distributed on a regular basis.

Earnings

The amount of profit that a company produces over a specific time period, typically reported as net income.

Mature Firms

Mature firms are companies that have reached a phase of growth where earnings, sales, and cash flows are relatively stable and predictable.