Which of the Following Games Might a Risk-Averse Person Be

question 153

Multiple Choice

Which of the following games might a risk-averse person be willing to play?

• A)A game where she has a 50 percent chance of winning $1 and a 50 percent chance of losing $1.
• B)A game where she has a 60 percent chance of winning $1 and a 40 percent chance of losing $1.
• C)Both A and B.
• D)Neither A nor B

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Definitions:

Teller's Check

A check drawn by a bank on its own funds and signed by a teller, typically considered a secure form of payment.

Draft

A preliminary version of a piece of writing or design.

Transferable Check

A type of check that allows the original payee to endorse it to another party, transferring the right to cash or deposit.

Clearinghouse

An intermediary body that facilitates the exchange of payments, securities, or derivatives transactions among its members.