Risk Sharing

question 37

Multiple Choice

Risk sharing

• A)generally reduces the tax liability of savers.
• B)increases borrowers' ability to raise funds in the financial system.
• C)comes at the cost of lower liquidity.
• D)is sometimes offset by the effects of diversification.

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Definitions:

Point Estimate

A single value that serves as the best guess or best estimate of a population parameter based on sample data.

Population Parameter

A numerical value that summarizes or describes an aspect of a population.

Point Estimate

A single value (or point) derived from a sample that best predicts or estimates an unknown population parameter.

Population Proportion

The fraction or percentage of individuals in a population who possess a specific attribute or characteristic.