Which of the Following Statements Regarding Insurance and Hedging Is

question 36

Multiple Choice

Which of the following statements regarding insurance and hedging is (are) true?
I.Insurance involves the transfer of an insurable risk while hedging handles risk that is typically uninsurable.
II.Insurance transactions can reduce objective risk,while hedging typically involves only risk transfer and not risk reduction.

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

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Definitions:

Psychological Theories

Concepts or models developed to understand the mind, behavior, and interpersonal relationships through various frameworks.

Social Status

The position or rank of a person or group within the social hierarchy, often influenced by factors such as occupation, income, heritage, education, and power.

Gender Differences

Variations in characteristics, behaviors, physical development, roles, and psychological attributes between males and females.

Individual Differences

Variations among individuals in regard to their psychological traits, behaviors, and physiological responses.