Which of the Following Is True of Risk Pooling

question 42

Multiple Choice

Which of the following is true of risk pooling?

• A) The cost of default by a single borrower usually outweighs the pro?table proceeds from risk pooling.
• B) Risk pooling can lead to a bank failure if a single borrower defaults.
• C) Risk pooling allows banks to fund projects that are too risky for a single individual.
• D) Risk pooling involves choosing a correlated set of risks.

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Definitions:

Customer Profile Sheet

A document containing key information about a customer, such as demographic details, buying preferences, and purchase history, used to tailor sales approaches.

Sales Call

A communication, often in person or by phone, initiated by a sales representative to promote a product or service.

Customer Benefit Plan

A strategy or program designed to provide advantages or positive outcomes to customers, enhancing satisfaction and loyalty.

Sales Presentation

A sales presentation is a pitch or demonstration provided by a salesperson to a prospect, highlighting the features, benefits, and value of a product or service to persuade the prospect to make a purchase.