The Idea That Some People Engage in Risky Behavior Due

question 152

Multiple Choice

The idea that some people engage in risky behavior due to the fact that they have good health care is known as

• A) moral hazard.
• B) risk aversion.
• C) zero-sum game.
• D) risk-taking behavior.

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Definitions:

Spot Exchange Rate

The present exchange rate for immediate swap of one currency to another.

Forward Exchange Rate

The price set today for a currency exchange that will occur at a future date.

Spot Exchange Rate

The current exchange rate at which a currency can be bought or sold for immediate delivery.

Forward Exchange Rate

An agreed-upon exchange rate for a currency transaction that will occur at a future date, used for hedging or speculation in foreign exchange markets.