6
practice testMultiple Choice

Practice Test

Question 6 • Personal Finance

Part A: What affects insurance cost?

Answer
A
clothing
B
hobbies only
C
personal risk factors
D
weather

Explanation

Insurance costs are based in part on how likely a person is to make a claim, which insurers estimate using personal risk factors. Clothing and weather are not general measures of an individual’s insurance risk, and “hobbies only” is too narrow. The correct choice is personal risk factors.

AI-written and checked against the verified answer.

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