If Insurance Did Not Exist in the United States, Which

question 36

Multiple Choice

If insurance did not exist in the United States, which of the following might reasonably be expected to happen?

• A) Banks would lower their interest rates on home mortgages and auto loans.
• B) Moral hazards would decrease.
• C) The occurrence of perils would decrease.
• D) In general, only large businesses would be able to survive.

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Definitions:

Type of Business

Categories or classifications of commercial organizations based on factors like ownership, size, and product or service rendered.

Chapter 7

A provision of U.S. bankruptcy law under which an individual or business liquidates assets to pay off debts under the guidance of a court-appointed trustee.

Trustee

Someone legally appointed to manage and administer property or assets for the benefit of another, often used in contexts like bankruptcy, trust funds, and estates.

IRA

An Individual Retirement Account, a financial tool designed to help individuals save for retirement with tax advantages.