Insurance Companies Perform All of the Following Functions Performed by Financial

question 108

Multiple Choice

Insurance companies perform all of the following functions performed by financial intermediaries except:

• A) transferring risk.
• B) pooling the resources of small savers.
• C) making large investments.
• D) supplying liquidity.

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Definitions:

Shredding

The process of cutting or tearing sensitive or confidential documents into unreadable pieces to protect information security.

Contingency Fee

A legal fee that consists of a specified percentage of the amount the plaintiff recovers in a civil lawsuit. The fee is paid only if the plaintiff wins the lawsuit or recovers damages.

Hourly Fees

Charges or costs calculated based on the amount of time spent on providing services, typically expressed per hour.

Backing Up Data

The process of copying files or databases so that they will be preserved in case of equipment failure or other catastrophe.