A group of farmers agreed that if any farmer suffered a property loss, the loss would be spread over the entire group. In this way, each farmer is responsible for the average loss of the group rather than the actual loss that each farmer sustained
Which characteristic of insurance is embodied in this agreement?
A) pooling of losses
B) fortuitous losses
C) risk avoidance
D) indemnification
Answer: A
Business
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Elaine surpassed her sales goal and earned a small cash award for her strong performance. This is an example of a ______.
Fill in the blank(s) with the appropriate word(s).
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Fruit Flavors Online Inc. plans to issue $5,000,000 of commercial paper with a 6-month maturity at 97% of par value. What is the 6-month interest rate?
A) 1.50% B) 3.00% C) 3.09% D) 6.18%
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