Catastrophe Bonds Are Made Available to Institutional Investors in the Capital

question 30

Multiple Choice

Catastrophe bonds are made available to institutional investors in the capital markets through an entity that is specially created for that purpose.This is entity is called a

• A)risk retention group.
• B)fraternal insurance company.
• C)captive insurance company.
• D)special purpose reinsurance vehicle.

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Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, first demonstrated by Ivan Pavlov.

US

Stands for "Unconditioned Stimulus," a stimulus that naturally and automatically triggers a response without prior conditioning in the context of psychology.

Effective Conditioning

A learning process in which a response becomes more frequent or predictable in a given environment due to reinforcement.

CS Precedes US

In classical conditioning, the conditioned stimulus (CS) is presented before the unconditioned stimulus (US) to establish a conditioned response.