Insurance companies do NOT cover losses that would
A) happen to all of the policyholders at once.
B) happen with a very low probability.
C) happen to just a handful of policyholders.
D) happen with uncertainty.
A
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Banks are exposed to interest rate risk primarily because
A) interest rates are very difficult to forecast. B) the maturities of banks' assets and liabilities differ. C) borrowers from banks are prone to default. D) depositors are always searching for a slightly higher interest rate.
In general, financial assets that have a(n) _______ amount of risk have a _________ rate of return.
A. higher; higher B. higher; lower C. lower; higher D. equal; higher
Which of the following is a potential solution to help low-income countries reduce their greenhouse gas emission?
a. The European Union relaxing strict guidelines for low-income countries’ emissions b. Reducing the emissions allowed by high-income countries c. High-income countries paying for some of the costs associated with reducing the emissions d. Imposing new, stricter emissions guidelines for low-income countries
Nominal GDP will definitely increase when
a. prices increase and output increases. b. prices increase and output decreases. c. prices decrease and output increases. d. All of the above are correct.