The Risk Manager Must Find a Way to Create a Similar

question 32

Multiple Choice

The risk manager must find a way to create a similar cash flow to replace the lost income once the person dies.Because the timing of the death cannot be predicted, it is common to calculate the _____ of the income stream to derive a single number.

• A)book value
• B)threshold point value
• C)future value
• D)present value
• E)annuity value

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Definitions:

Learning

Learning is a process through which experience or practice leads to a relatively permanent change in behavior or knowledge, encompassing a wide range of cognitive, emotional, and environmental influences.

Sensory Registers

A memory system that temporarily holds information from the sensory systems, allowing it a brief opportunity to be processed further.

Sensory Information

Data that is collected by the senses (sight, smell, touch, taste, and hearing) and sent to the brain for processing, interpretation, and response.

External World

Everything that exists outside the mind, including physical objects, events, and other people, as perceived through the senses.