The ________ Is an Additional Return Beyond the Risk-Free Rate

question 13

Multiple Choice

The ________ is an additional return beyond the risk-free rate that can be earned from a deposit guaranteed by the government.

• A)additional premium
• B)risk premium
• C)specific return
• D)nominal return

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Definitions:

Property Insurance Policy

A contract that provides financial reimbursement to the owner or renter of a structure and its contents, in case of damage or theft.

Premiums

Regular payments made to an insurance company in exchange for coverage.

Casualty Insurance

Insurance coverage against loss or liability stemming from accidents or unexpected events, excluding life, health, and property insurance.

Salvage Yard

A place where damaged, decommissioned, or inoperative vehicles are stored and processed for parts recovery and recycling.