Which of the Following Statements Concerning FAIR Plans Is (Are)true

question 18

Multiple Choice

Which of the following statements concerning FAIR plans is (are) true?
I.All property is eligible for coverage regardless of physical condition.
II.Losses and expenses are shared by insurers who participate in a plan.

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

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Definitions:

Net Exports

Spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports).

Central Bank

An institution that manages a country's currency, money supply, and interest rates, usually with the aim of managing inflation and ensuring financial stability.

Federal Reserve Act

The act of Congress that created the Federal Reserve System in 1913, establishing the central banking system of the United States.

Maximum Employment

An economic situation in which all available labor resources are being used in the most efficient way possible.