Which of the following statements regarding insurance and gambling is (are)true?
I.Insurance is used to handle existing pure risks,while gambling creates a new speculative risk.
II.Insurance usually involves risk avoidance,while gambling typically involves only risk reduction.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Statement I is true as insurance is used to handle unexpected losses or pure risks, while gambling is a voluntary activity that creates a new speculative risk. Statement II is not true as both insurance and gambling involve risk reduction to some extent.

Which of the Following Statements Regarding Insurance and Gambling Is