Insurance Is Possible and Can Be Profitable Because of

question 145

Multiple Choice

Insurance is possible and can be profitable because of

• A) private information.
• B) adverse selection.
• C) moral hazard.
• D) consumers are risk aversion.

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Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, which may differ from its market value.

Acquisition

The process or act of acquiring or purchasing another company or asset.

Additional Paid-In Capital

Refers to the amount of money paid by investors for shares in a company above the par value of the shares.

Par Value

The face value of a bond or stock, as stated by the issuing company, which may differ from its market value.