A Contract Used Primarily to Hedge Against the Risk Up

question 7

Multiple Choice

A contract used primarily to hedge against the risk up potential loss is a/an __________ contract.

• A) employment
• B) insurance
• C) medical
• D) specified

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Definitions:

Desirable Behaviour

Actions or reactions that are preferred or encouraged within a specific context due to their positive outcomes or alignment with set norms.

Reinforcing Value

The increase in likelihood of a behavior reoccurring, due to the positive outcomes or rewards associated with it.

Negative Reinforcement

A behavior modification technique that increases the likelihood of a behavior by removing or avoiding a negative outcome or stimulus.

Undesirable Consequence

Negative outcomes or punishments associated with a specific action or behavior, which function to decrease the likelihood of the behavior reoccurring.