What Should You Do If the Severity of Risk Is

question 77

Multiple Choice

What should you do if the severity of risk is medium and the frequency of the risk event occurring is medium?

• A) Purchase insurance.
• B) Accept the risk.
• C) Avoid the risk.
• D) Manage the risk.

Recognize the role of financial intermediaries, specifically banks, in the economy.

Understand the basics of bank operations, including asset, liability, and net worth relationships.

Recognize how banks manage risks and overcome the problem of asymmetric information.

Understand the conceptual framework of globalization.