Statistical Discrimination in the Automobile Insurance Industry Means That Young

question 65

Multiple Choice

Statistical discrimination in the automobile insurance industry means that young male drivers that drive __________ will pay __________ rates relative to the claims they generate.

• A)carefully;lower
• B)recklessly;higher
• C)carefully;higher
• D)slowly;lower

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Definitions:

Pension Plan

A retirement plan offered by an employer, providing financial benefits to employees upon retirement.

Journal Entries

Recorded transactions in the accounting records of a business, showing the financial effects of business transactions.

Settlement Rate

The agreed-upon rate used to calculate the exchange of payments between counterparties in financial transactions, such as in derivatives or loans.

Pension Expense

The cost incurred by an employer to fund its defined benefit pension plan, reflecting the amount needed to cover benefits earned by employees during the period.