Which term describes the legal responsibility for the financial costs of another person's losses or injuries?

Which term describes the legal responsibility for the financial costs of another person's losses or injuries?

• A. Premium
• B. Liquidity
• C. Liability
• D. Treasuries

Answer: (C)

Liability is the legal duty to compensate others for harms you cause. It means you’re financially responsible for losses or injuries resulting from your actions or negligence, and liability coverage helps pay those costs if you’re found at fault. The other terms refer to different ideas: a premium is the price of the insurance policy, liquidity describes how easily assets can be turned into cash, and treasuries are government debt securities. So the term that best fits the description is liability.

Liability is the legal duty to compensate others for harms you cause. It means you’re financially responsible for losses or injuries resulting from your actions or negligence, and liability coverage helps pay those costs if you’re found at fault. The other terms refer to different ideas: a premium is the price of the insurance policy, liquidity describes how easily assets can be turned into cash, and treasuries are government debt securities. So the term that best fits the description is liability.