CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Which form is an example of risk acceptance?

A. An auto-insurance company charges lower premiums if drivers have safe driving records.
B. A commercial bank sets aside sufficient capital to cover losses if needed.
C. A new driver purchases auto-insurance.
Correct Answer: B

A: risk prevention. C: risk transfer. B: self-insurance (risk acceptance).

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