Which of the Following Is True of Co-Insurance

question 43

Multiple Choice

Which of the following is true of co-insurance?

• A) It is an amount of loss that is specifically excluded by the insurance contract.
• B) It requires that an owner carry insurance equal to a stated minimum percentage of the market value of their property.
• C) It results in the decrease of the amount of premium that the insurance company collects from businesses.
• D) It is the amount of an asset for which a company will write an insurance policy.

Grasp the concepts of budget deficits, surpluses, and their implications.

Understand the impact of fiscal policy on employment and economic gaps.

Identify the historical context and trends of fiscal policy and national debt.

Understand the concept of overjustification effect and how extrinsic rewards can influence intrinsic motivation.

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Definitions:

Continuous Compounding

Continuous compounding refers to the process of calculating interest on an investment, where the interest amount is reinvested and earns additional interest continuously, leading to exponential growth.

Sharpe Ratio

A metric used to assess the risk-adjusted return of an investment portfolio.

Small U.S. Stocks

Small U.S. stocks are shares issued by companies with relatively small market capitalization, typically considered to offer higher growth potential but with increased risk compared to large-cap stocks.

Long-Term U.S. Treasury Bonds

Government bonds issued by the United States Department of the Treasury with maturities typically longer than 10 years, providing stable income with low risk.