An Insurance Company Is Likely to Attract Customers Like Clancy

question 323

Multiple Choice

An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy. What is the term used to describe the situation above?

• A) moral hazard
• B) adverse selection
• C) asymmetric information
• D) economic irrationality

Understand the structural adaptations of the alimentary canal for efficient digestion and nutrient absorption.

Identify the various types of teeth and their specialized functions.

Understand the different layers of the alimentary canal and their respective roles.

Recognize the structural components of a tooth and their distribution.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand dynamics.

Strike Price

In options trading, the predetermined price at which the holder of the option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Put Option

This is a financial deal which provides the participant the freedom, but not the compulsion, to part with a given amount of a principal asset at an established cost during a set span.

Market Price

The existing rate at which a service or asset is available for buying or selling in a market environment.