You Can Learn About the Financial Stability of an Insurance

question 64

Multiple Choice

You can learn about the financial stability of an insurance company by checking _____ rating system.

• A) the insurance agent's
• B) the U.S. Securities and Exchange Commission (SEC)'s
• C) Standard & Poor's
• D) the Federal Bureau of Investigation (FBI)'s
• E) a financial institution ' s

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Definitions:

Economic Efficiency

A state in which resources are allocated in the most effective manner, maximizing the production of goods and services without wasting resources.

Representative Democracy

A system of government where citizens elect representatives to make decisions and enact laws on their behalf.

Balanced Budget Amendment

A proposed amendment to the U.S. Constitution requiring that the federal government not spend more than its income.

Shortsightedness Effect

A situation where decision-makers prioritize immediate benefits over long-term gains, potentially leading to suboptimal outcomes.