21
QuizMultiple Choice

Managing Risk — Test

Question 21 • Personal Finance

What happens with a lower premium?

Answer
A
full coverage
B
higher financial risk
C
no cost
D
lower risk

Explanation

A lower insurance premium means you pay less regularly for the policy, but it often comes with a higher deductible or less coverage. That leaves you responsible for more of the costs if something goes wrong, so it means higher financial risk, not no cost or full coverage.

AI-written and checked against the verified answer.

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