Risk pooling:
A) doesn't reduce the risk of catastrophes happening to individuals.
B) assures the individuals that they are less likely to have a catastrophe occur.
C) reduces the risk of catastrophes happening collectively to groups.
D) None of these statements is true.
Correct Answer:
Verified
Q64: Insurance policies can be bought to cover
Q90: Risk pooling:
A)reallocates the likelihood of catastrophes happening.
B)reallocates
Q92: The foundational principle that makes insurance companies
Q93: Insurance:
A)reduces the risks inherent in life.
B)helps individuals
Q93: Insurance works because it:
A) reallocates the costs
Q94: Insurance companies:
A)profit from the difference between the
Q97: Risk pooling:
A)doesn't reduce the risk of catastrophes
Q97: A mechanism for reallocating risk is:
A) risk
Q98: When risks are shared across many different
Q98: Diversification involves:
A) investing all your money in
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