If You Choose to Insure Your Home or Your Vehicle

question 34

Multiple Choice

If you choose to insure your home or your vehicle, you are using

• A) Risk avoidance.
• B) Risk reduction.
• C) Risk assumption.
• D) Risk shifting.
• E) Risk increasing.

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Definitions:

Drawer's Signature

is the signature of the person who has written and is responsible for the financial instrument, such as a check, authorizing its use and the payment it represents.

Customer's Negligence

A situation where a customer's failure to exercise reasonable care results in harm or damage.

Re-Credit

The process of restoring a previously deducted amount back into an account or credit rating.

Dishonored

describes a financial instrument, such as a check or a bill, that has been refused payment by the bank or person it was presented to.