Multiple Choice
(Consider This) Which of the following statements about insurance and risk is true?
A) Insurance inhibits economic growth and investment by discouraging risk-taking.
B) Insurance transfers risk from those with a high tolerance for risk to those with a low tolerance for risk.
C) Insurance companies always earn profits because insurance premiums always exceed the payout for insured events.
D) Insurance transfers risk from those with a low tolerance for risk to those with a higher tolerance for risk.
Correct Answer:
Verified
Correct Answer:
Verified
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