A Bank

question 13

Multiple Choice

A bank

• A)cannot be regulated.
• B)is essentially the same as an insurance company.
• C)has assets with maturity that is different from that of its liabilities.
• D)performs no useful social function.
• E)is not a financial intermediary.

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Definitions:

Actuarial Insurance

The application of statistical and mathematical methods in the insurance industry to calculate risk and determine premiums.

Frequency

The rate at which a repeated event occurs, such as the number of waves that pass a fixed point in a specific amount of time in the context of physics, or the regularity of an occurrence in general terms.

Potential Loss

The possibility of financial detriment or damage in the future.

Property Insurance Policy

A contract that provides financial reimbursement to the owner or renter of a structure and its contents, in case of damage or theft.