Which of the Following Is Not an Example of Risk

question 128

Multiple Choice

Which of the following is not an example of risk reduction?

• A)Wearing seat-belts
• B)Looking both ways before you cross the street
• C)Purchasing homeowner's insurance
• D)Installing a smoke detector

---

Definitions:

Available-For-Sale

A classification of financial assets indicating that they are not actively traded but can be sold to meet liquidity needs.

Realized Loss

Occurs when an asset is sold for less than its carrying amount on the books, representing an actual loss of capital.

Straight-Line Method

A method of calculating depreciation or amortization that allocates the cost of an asset evenly across its useful life.

Accrued Interest

Interest that has been incurred on a loan or bond but has not yet been paid out to the lender.