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Channeling Funds from Individuals with Surplus Funds to Those Desiring

question 29

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Channeling funds from individuals with surplus funds to those desiring funds when the saver does not purchase the borrower's security is known as


Definitions:

Crop Insurance Programs

Government or private sector initiatives designed to protect farmers against losses due to natural disasters, pests, or drops in market prices.

Agricultural Risk Coverage

A form of crop insurance that pays out if the total revenue generated by all the farmers planting a given crop in a given county falls below a predetermined value.

Price Loss Coverage

A form of crop insurance that pays participating farmers if the market price of their output falls below a predetermined value.

Inelastic

Describes a situation where the demand or supply of a good is not significantly affected by changes in price.

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