21
practice examMultiple Choice

Practice Exam

Question 21 • Personal Finance and Economics

In some cases, it is safe to avoid insurance because

Answer
A
it may not be needed.
B
only one person is at risk.
C
it is too expensive.
D
one is already in debt.

Explanation

Insurance is most useful for risks that could cause a loss you cannot comfortably afford. If the risk is minor or unlikely to require coverage, it may be reasonable to go without insurance. Being in debt or facing a high premium does not by itself make avoiding insurance safe.

AI-written and checked against the verified answer.

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