Financial Instruments Used Primarily to Transfer Risk Would Not Include

question 107

Multiple Choice

Financial instruments used primarily to transfer risk would not include:

• A) a bank loan.
• B) options.
• C) an insurance policy.
• D) home mortgages.

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Definitions:

English Auction

An auction format where the price increases incrementally with each new bid, and the item is sold to the highest bidder at the close of bidding.

Expected Revenue

Expected revenue is the amount of money a business anticipates earning over a specific period, based on forecasted sales volumes and prices.

Rationally

Making choices that are consistent and in line with one's self-interest, guided by the use of reason and available information.

Sealed-Bid

A type of auction or tender where bidders submit confidential offers, and usually, the highest bid wins without the bids being disclosed to other participants.