If the loss ratio on a line of insurance is 70 percent and loss adjustment expenses are 33 percent, then the line is profitable before dividends if the ratio of
A. commissions and other expenses are 15 percent and investment yields are 10 percent.
B. commissions and other expenses are 5 percent and investment yields are 6 percent.
C. commissions and other expenses are 16 percent and investment yields are 20 percent
D. commissions and other expenses are 15 percent and investment yields are 12 percent.
E. commissions and other expenses are 6 percent and investment yields are 4 percent.
Answer: C. commissions and other expenses are 16 percent and investment yields are 20 percent
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The economic resources of a business such as furniture, building, and land are its ________
A) liabilities B) revenues C) assets D) dividends
The maturity gap model estimates the difference between interest earned and interest paid during a given period of time.
a. true b. false