Catastrophe Bonds or "Cat Bonds" Were Developed

question 111

Multiple Choice

Catastrophe bonds or "cat bonds" were developed:

• A) by reinsurance companies to finance their growth.
• B) as an alternative to purchasing reinsurance.
• C) prior to the creation of reinsurance companies but are being phased out.
• D) by the U.S. government to provide insurance against national disasters.

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Definitions:

Profit

The difference between what it costs to make and sell a product and what a customer pays for it.