What Is One Reason the Federal Government Might "Bail Out

Multiple Choice

What is one reason the federal government might "bail out" farmers in flood prone areas of the country?

A) Such flooding is not diversifiable and therefore only non-profit entities, such as the federal government, can cover the risks.
B) Such flooding is diversifiable, but insurance company CEOs are more concerned with their stockholder wealth than the well-being of farmers.
C) Such flooding is diversifiable, but the market for such insurance policies cannot clear without the assistance of the International Community.
D) Such flooding is known to happen on a regular basis and therefore there is no "risk" to be insured against.