Risk Pooling

question 4

Multiple Choice

Risk pooling:

• A)reduces the chances of catastrophes happening.
• B)lowers the costs of catastrophes when they occur.
• C)reduces the cost to an individual if a catastrophe occurs.
• D)All of these are true.

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Definitions:

Retirement

The period in life when an individual stops working on a full-time basis, typically supported by savings, pensions, or retirement plans.

Note Amortization Table

A schedule detailing each payment on an amortizing loan, including amounts allocated for principal and interest over a specified period.

Annual End-of-year Payments

Payments made at the end of each fiscal year, often referring to dividends, bonuses, or installment payments due.

Journal Entries

These are recordings of financial transactions in the accounting books, documenting the debit and credit accounts affected by each transaction.