Which of the Following Is a Hazard but Not a Risk

question 217

Multiple Choice

Which of the following is a hazard but not a risk, according to the textbook?

• A)the Kilauea volcano, which covers subdivisions with molten lava
• B)a cinder cone that erupts hot molten fragments on an unpopulated Pacific island
• C)a volcano in Iceland that threatens people with dangerous gases
• D)a volcano in Iceland that caused catastrophic flooding that destroyed houses and roads
• E)All of these are both a hazard and a risk.

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Definitions:

Mortgage-Backed Securities

Financial instruments secured by a pool of mortgage loans, whose cash flows are passed through to investors.

Monthly Interest

Interest calculated or paid on a debt or investment on a monthly basis.

Homogeneous Pools

Groups of assets or securities that are similar in nature, making them easier to analyze collectively.

Cryptocurrency

A type of digital or virtual currency that uses cryptography for security and operates independently of a central bank.