The law of large numbers allows insurance companies to
A) hold capital market instruments as assets without fearing overly large numbers of defaults.
B) hold money market instruments as assets without fearing overly large numbers of defaults.
C) predict the average number of occurrences of insurable events in a large population of policyholders.
D) charge higher premiums than necessary, knowing that large numbers of individuals will pay them.
C
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Which of the following holds true in a circular flow diagram?
A) Income flow are represented by drawing an arrow from the household sector to firms. B) Factor flows are represented by drawing an arrow from the firm sector to the household sector. C) Production flows are represented by drawing an arrow from the firm sector to the household sector. D) Expenditure flows are represented by drawing an arrow from the firm sector to the household sector.
What is the relationship between individual supply and market supply?
What will be an ideal response?
Which of the following is not likely to contribute to gains in productivity?
A. Greater expenditures on training and education. B. Improved management. C. Greater expenditures on research and development. D. Increased unemployment benefits.
The policy mix of a contractionary fiscal policy and a contractionary monetary policy would cause output to ________, and interest rates to ________.
A) decrease; increase, decrease, or remain unchanged B) decrease; decrease C) decrease; increase D) increase, decrease, or remain unchanged; decrease