3
QuizMultiple Choice

Making Spending Decisions — Unit test

Question 3 • ***CPS Online Personal Finance fall – 3-2027

When an insurance company needs to provide a payout, the money is removed from

Answer
A
the consumer’s income.
B
a bank loan.
C
a pool of funds.
D
the consumer’s account.

Explanation

Insurance companies collect premiums from many policyholders and combine them into a pool of funds. When a covered loss occurs, the payout comes from that shared pool, rather than directly from the individual consumer’s income or account.

AI-written and checked against the verified answer.

Previous
Next