Which of the Following Statements About the Traditional Net Cost

question 17

Multiple Choice

Which of the following statements about the traditional net cost method of measuring the cost of life insurance is (are) true?
I.The traditional net cost method does not consider the time value of money.
II.The traditional net cost method can show that life insurance has a negative cost.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

---

Definitions:

Infrastructure Problem

Issues or challenges related to the basic facilities, services, and installations needed for the functioning of a community or society, like roads, bridges, and power supplies.

Capital Flight

The rapid movement of large sums of money or capital out of a country due to economic or political instability, affecting the country's financial health.

Microlending

The provision of small loans to entrepreneurs and small businesses lacking access to banking and related services.

Human Capital

The knowledge and skills that make a person productive.