CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

An entity choosing to transfer risk may ______

A. establish a reserve fund to cover losses.
B. enter into a derivative contract.
C. buy insurance.
Correct Answer: C

An insurance policy can be used to transfer risk to another party.

User Contributed Comments 1

User Comment
mikus A = risk acceptance
B = risk shifting
You need to log in first to add your comment.