Financial Literacy Ch 6 Vocabulary Review

The chance of injury, damage, or economic loss.

• risk
• loss
• probability
• premium

A physical injury, damage to property, or disappearance of property or other assets.

• risk
• loss
• probability
• premium

The likelihood of a risk resulting in a loss.

• risk
• loss
• probability
• premium

The price you pay for insurance coverage.

• risk
• loss
• probability
• premium

The process of identifying risks and deciding how serious they are.

• risk assessment
• risk reduction
• risk avoidance
• risk transfer

Finding ways to lower your chance of incurring a loss.

• risk assessment
• risk reduction
• risk avoidance
• risk transfer

Stopping behavior that leads to a risk.

• risk assessment
• risk reduction
• risk avoidance
• risk transfer

Passing risk to another party.

• risk assessment
• risk reduction
• risk avoidance
• risk transfer

Setting aside money to be used in the event of injury or loss of assets.

• risk assumption
• self-insure
• premium
• loss

Accepting the consequences of risk.

• risk assumption
• self-insure
• premium
• loss