Explain the two types of gift, or stored value, cards
What will be an ideal response?
Answer: There are two kinds of gift, or stored value, cards. The first is the single-purpose, or "closed-loop," card, which can be used only at one store for one purpose. The second is the multipurpose, or "open-loop," card, which can be used at most locations, just like a credit card. This type of card is becoming more and more common. Many employees receive their paychecks on a stored value card. More than 1,000 companies, including Walmart, FedEx, McDonald's, U-Haul, UPS, Coca-Cola, Blockbuster Video, and Denny's, offer to pay employees with Visa Payroll cards, which are a form of stored value cards, instead of checks.
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"All risks" homeowners' insurance insures you against
A) the general class of risks associated with the perils named in the policy. B) all risks not specifically excluded in the policy. C) both flood and earthquake damage. D) no more risks than a named perils policy.
Moral hazard may occur when a firm or individual takes on more risk when it knows that someone else will "pick up the tab."
Indicate whether the statement is true or false.