Which of the following is NOT TRUE about Insurance companies? * a. They are non-depository institutions that does not accept deposits. b. Collects deposits like banks and reinvests them in profitable financial securities. c. Collects premiums from clients for payment of policies. d. Clients transfer risks to insurance companies in exchange for premiums paid. e. None of the choices.

Q: the were notified of the changes 37. A building owned by A. is sold for cash to B. Two days after…

A: Insurance is a contract in which an individual or entity receives financial protection or…

Q: When you choose to buy insurance, are you speculating? When you choose not to buy insurance, are you…

A: In the field of economics, making investments or financial decisions based on unpredictable future…

Q: What is the main purpose of AMLC (Anti-Money Laundering Council? * a. Monitor all transactions of…

A: Money laundering refers to the situation when a firm, bank or any other institution make an exchange…

Q: List three different ways that a risk-averse person can reduce financial risk.

A: We can say, Financial Risk would result in the risk which would be borne by the investor which…

Q: Money prices microanalysis about vouch insurance?

A: Vouch Insurance Vouch Insurance is a new kind of startup insurance firm.Vouch's totally digitally…

Q: The main advantage of mutual funds is that theyprovidea. a return insured by the government.b. an…

A: Meaning of Mutual Funds: Mutual Funds are an investment company where one pools in the saving and…

Q: 2. Below is a market for health insurance, with 5 people. Their expected costs, risk premiums, and…

A: At the given willingness to pay (WTP) of individuals, those will buy the insurance whose WTP is…

Q: The following are the advantages of financial intermediaries, except:  A. Provide guaranteed returns…

A: Financial Intermediaries:- Financial intermediaries function as go-betweens for financial…

Q: Compare credit, savings, and investment services available to the consumer from financial…

A: Financial institutions, which include lenders, financial agencies, insurers, and securities dealers,…

Q: Since 1982, banks and thrift institutions have offered a type of savings account that yields a…

A: The saving accounts which have no minimum maturity are known as certificate of deposits (CDs)

Q: The FDIC а. has been credited with reducing the number of bank failures since 1933. b. insures most…

A: The Federal Deposit Insurance Corporation (FDIC) is one of two organizations that give deposit…

Q: Why do the government subsidize insurance companies.

A: The subsidy is the process of providing a sum of money by the government to the firm or the…

Q: If you bought 100 shares of a call option on Tesla shares that had a 50 delta, what would be your…

A: Delta hedging transaction refers to the option strategy which will help to minimize the risks…

Q: The benefit of establishing a long-term relationship with your banker is to:   A. Reduce the…

A: A banker is a person that involves in receiving and depositing the customer’s money in the banks.

Q: Bonds issued by corporations and exposed to default risk are classified as A. corporation bonds B.…

A: The objective of the question is to identify the correct classification of bonds issued by…

Q: Assume that you are a wealthy investor, which one do you prefer mutual funds or hedge funds? Why?

A: Mutual fund and multifaceted investments are overseen portfolios worked from pooled assets fully…

Q: c14. You have savings accounts at two separately FDIC insured banks, ABC Bank and XYZ bank. At ABC…

A: Given the deposit amount in ABC bank = $200000 The deposit amount in XYZ bank = $60000

Q: An insurance company suffers from adverse selection if Select one: a. Safe customers are less likely…

A: The correct answer is: 1. safe customers are less likely to insure than risky customers.This is the…

Q: An automobile is an asset, but it is not liquid because:   a. The automobile may not be in good…

A: Liquid assets are assets that can be easily used for further transactions, which are easily…