15
practice examMultiple Choice

Practice Exam

Question 15 • CMS 2026-2027 Economics and Personal Finance HONORS INITIAL CREDIT

In some cases, it is safe to avoid insurance because

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

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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