Why are some insurance companies interested in programs for nationwide disaster insurance for floods, earthquakes, and hurricanes?
What will be an ideal response?
Disasters are often regional, specific disasters are localized, and disasters occur at different times. By insuring for more risks together, companies can reduce the risks they would face in any single market.
Economics
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With its goal of price stability, the Fed attempts to
A) keep the inflation rate from falling below 5% and rising above 10%. B) maintain an inflation rate of zero. C) achieve a low, stable inflation rate. D) counteract periods of inflation with periods of deflation.
Economics
If currency outstanding equals $500 million, checkable deposits equal $2 billion, reserves equal $200 million, and the required reserve ratio is 0.10, the money multiplier equals
A) 1.14. B) 3.57. C) 4.35. D) 5.
Economics