Which of the Following Is NOT Correct

question 61

Multiple Choice

Which of the following is NOT correct?

• A) If you live in a rural area, your auto insurance premium will likely be lower than if you live in a city.
• B) In general, young drivers (under 25) and elderly drivers (over 70) have more frequent and more serious accidents.
• C) Multiple accidents or traffic violations can increase insurance rates.
• D) The number of small claims you have should not affect your premium.
• E) Your credit score can cause your premium to change.

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Definitions:

Carrying Amount

The monetary value of an asset or liability as recorded on the balance sheet, factoring in depreciation, amortization, or impairment.

Unamortized Premium

The portion of a bond premium that has not yet been amortized (gradually written off) over the period of the bond's life.

Face Value

The nominal or dollar value printed on a security or a bond, representing its legal value.

Instalment Payment

A method of payment whereby the total cost of a purchase is divided into smaller amounts, to be paid over a specified period of time.