Risk Aversion Helps to Explain Various Things We Observe in the Economy,including

question 45

Multiple Choice

Risk aversion helps to explain various things we observe in the economy,including

• A)adherence to the old adage,"Don't put all your eggs in one basket."
• B)insurance.
• C)the risk-return trade-off.
• D)All of the above are correct.

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Definitions:

Adjusting Entries

Entries recorded in accounting logs at the end of a fiscal period for the purpose of allocating earnings and costs to their rightful period.

Note Payable

A written promissory note in which the borrower agrees to pay back a specified sum to the lender at a future date, with interest.

Unearned Fees

Income received by a business for services that have yet to be performed or delivered, considered a liability until the service is completed.

Unearned Revenue

Money received by a company for goods or services that have yet to be provided to the customer.