An Earthquake Is an Example of

question 44

Multiple Choice

An earthquake is an example of

• A)a moral hazard.
• B)a peril.
• C)a physical hazard.
• D)an objective risk.

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Definitions:

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Financial Futures Contracts

Agreements to buy or sell a financial instrument at a future date for a price agreed upon today.

DAX 30 Index

A stock market index that represents 30 of the largest and most liquid German companies trading on the Frankfurt Stock Exchange.

CAC 40 Index

A benchmark French stock market index that represents the 40 largest equities listed in France, measuring their performance.