Multiple Choice
One sign that your money will be safe in a savings account is if:
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7. Receivables and Investments
Types of Receivables
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In auto insurance, a higher deductible means the customer _____.
A
will pay more out-of-pocket before insurance coverage begins
B
will pay less out-of-pocket before insurance coverage begins
C
will not be responsible for any damages
D
will pay lower premiums and receive more coverage
Verified step by step guidance1
Understand the concept of a deductible in insurance: A deductible is the amount the policyholder must pay out-of-pocket before the insurance company starts covering the costs.
Analyze the relationship between deductibles and premiums: Generally, higher deductibles result in lower premiums because the policyholder assumes more financial responsibility for initial costs.
Evaluate the options provided in the question: Consider how a higher deductible impacts out-of-pocket expenses and premiums.
Eliminate incorrect answers: For example, 'will not be responsible for any damages' is incorrect because a deductible means the policyholder is responsible for initial costs.
Select the correct answer based on the analysis: A higher deductible means the customer will pay more out-of-pocket before insurance coverage begins and will pay lower premiums.
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