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MrVanDelinder Buys a $50,000 Car

Question 12

Multiple Choice

Mr.VanDelinder buys a $50,000 car. Rather than buying insurance on the car,he sets aside $30,000 in a savings account to cover possible losses due to any accident. He is:


A) self insuring
B) eliminating risk through the use of a contingency fund
C) assuming risk
D) decreasing his risk of physical loss

Correct Answer:

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