Asked by Sygie Lamigo on Apr 27, 2024
Verified
Through insurance and other devices,the modern economy offers many ways for individuals to reduce their exposure to risk.
Insurance
A financial product that provides protection against losses or damages, typically in exchange for premium payments.
Exposure To Risk
The state of being open to damage or loss from factors outside of one’s control, often used in the context of investments and financial markets.
- Apprehend the habits of individuals avoiding risk and their strategies for the management of risk.
- Analyze the effects of diversification and the pooling of risk on reducing economic uncertainty.
Verified Answer
CP
Chancler PrattMay 02, 2024
Final Answer :
True
Explanation :
Insurance and other risk-management mechanisms allow individuals to transfer some or all of their risk to others, reducing their exposure to financial losses or other adverse events.
Learning Objectives
- Apprehend the habits of individuals avoiding risk and their strategies for the management of risk.
- Analyze the effects of diversification and the pooling of risk on reducing economic uncertainty.