Which One of the Following Is an Optional Function of Government

question 13

Multiple Choice

Which one of the following is an optional function of Government?

• A)defense
• B)old age security
• C)law and order
• D)none of these

Understand different strategies for managing risks, including avoidance, reduction, assumption, and shifting.

Identify the purposes and features of assigned risk pools.

Distinguish between key insurance concepts, including peril, hazard, risk, premium, and liability.

Recognize insurance coverage options for homeowners and how they protect against specific types of losses.

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Definitions:

Future Net Cash Flows

The estimated total cash income minus the total cash expenses expected over a future period.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Payback Period

The amount of time it takes for an investment to generate enough returns to recover the original investment cost.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.