All of the following is examples of Ex ante coping mechanisms except:
A) precautionary saving.
B) participation in informal insurance arrangements.
C) take out loans to smooth consumption.
D) use of insecticide-treated bed nets.

Question

Quizplus · Accepted Answer

Taking out loans to smooth consumption is not an ex ante coping mechanism, as it involves borrowing in response to an already existing shock. The other three options (precautionary saving, participation in informal insurance arrangements, and use of insecticide-treated bed nets) are all examples of ex ante coping mechanisms, as they are taken in advance of a shock to reduce the potential negative impact.

All of the Following Is Examples of Ex Ante Coping