Which of the Following Is NOT Correct

question 71

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 large city.
• B) In general, young drivers (under 25) and elderly drivers (over 70) have more frequent and more serious accidents.
• C) Multiple accidents or tickets will increase insurance rates.
• D) The cost and number of claims you have should not affect your premium.
• E) Your credit score can cause your premium to change.

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Definitions:

Debt/Equity Ratio

Determination of a firm's borrowing dependency, achieved by dividing its liabilities by its shareholder's equity.

Long-Term Debt

Long-term debt refers to loans and financial obligations lasting over one year that a company owes and is recorded on its balance sheet.

Long-Term Debt Ratio

A financial ratio that measures the proportion of a company's total debt that is due more than one year in the future.

Common-Base Year Value

A method used in economics and financial analysis to adjust values for comparison by fixing the prices of goods and services to a specific base year, neutralizing the effect of inflation.