The Most Common Method of Dealing with Risk Is To

question 42

Multiple Choice

The most common method of dealing with risk is to:

• A)shift the risk.
• B)pool the risk.
• C)avoid the risk.
• D)reduce the risk.
• E)assume the risk.

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Definitions:

Saving

The act of setting aside a portion of current income for future use, typically in a secure form such as a bank account or investment, to meet long-term goals or emergencies.

Shares

Shares represent an ownership stake in a company or financial asset, entitling the holder to a proportional share of the profits through dividends, if such profits are distributed.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to make available.

Saving

The portion of income not spent on consumption or taxes, typically put aside for future use or investment.