Explain what a policy reserve is. How is a policy reserve calculated?
What will be an ideal response?
A policy reserve is a legal reserve that insurance companies maintain in order to be able to pay out future claims. It is calculated by subtracting the present value of the future net premiums from the present value of future claims.
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During the 2000s, banks became complacent about making mortgage loans because
A. there was not a single bank failure in the decade. B. bank stocks performed better than the rest of the stock market. C. the banks counted on housing prices to keep appreciating. D. the government eliminated the FDIC.
Which of the following is not a satisfactory statement of the accounting equation?
a. Assets = Liabilities + Stockholders' Equity b. Assets – Stockholders' Equity = Liabilities c. Assets = Liabilities – Stockholders' Equity d. Assets – Liabilities = Stockholders' Equity
Answer the following statements true (T) or false (F)
1. Advocacy includes contacting a legislator to request his/her vote in favor of, or against, a specific bill. 2. An example of political campaign activity is conducting a nonpartisan candidate debate. 3. BoardSource found that less than one third of nonprofits had policies related to advocacy. 4. Smaller nonprofit organizations are more likely to engage in lobbying. 5. One reason nonprofit organizations may be ambivalent about lobbying is that they fear alienating donors.
Which of the following is true of the sovereign immunity doctrine?
A) A host government expropriates the property of a foreign corporation. B) A host government refuses to permit a company to use the court system of the owner's country to sue the host government. C) A host government insists that it must own more than 50 percent of a multinational joint venture. D) Courts in the host country pass a judgment against the company that cannot be contested by courts in any other nation.