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Which Statement Is TRUE If the Insurance Market Is Efficient

Question 135

Multiple Choice

Which statement is TRUE if the insurance market is efficient?


A) The deductibles eliminate moral hazard.
B) Society as a whole engages in less risky behavior.
C) It transfers risk from those who most want to get rid of it to those least bothered by the risk.
D) Premiums are always kept to the level of a fair insurance policy.

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