Which of the Following Statements Is Most Likely to Be

question 33

Multiple Choice

Which of the following statements is most likely to be TRUE?

• A)Hacker insurance provides protection from losses that may be caused by computer viruses.
• B)Business interruption insurance is generally used to hire and train a replacement if a key member of an organization dies unexpectedly.
• C)A surety bond generally provides coverage if an employee steals something from a business or its customer.
• D)A fidelity bond is generally used to assure a customer that compensation will be available if a project is not completed on schedule.
• E)Key person insurance usually applies if a business incurs an unexpected expense, such as when security issues cause a business to cut a new set of keys for is employees.

---

Definitions:

Real Interest Rate

The interest rate adjusted for the inflation rate, reflecting the real cost of borrowing and the real yield to lenders or investors.

Nominal Interest Rate

The rate of interest before adjusting for inflation, representing the face value of interest payments.

Inflation Rate

The tempo at which the broad cost of goods and services rises, leading to a downfall in purchasing strength.

Deflation

Deflation is a decrease in the general price level of goods and services, often associated with an increase in the purchasing power of money.