The significance of a free-look provision is that it

A) provides life insurance policyholders with the right to return their policies for any reason within 10 days of delivery for a full refund of premiums
B) means that the policyholder must be given access to the agent's records
C) allows a life insurance policy to be issued without a physical examination
D) is a special offer in which the policyholder receives the first 90 days of coverage for free"

Ans: A) provides life insurance policyholders with the right to return their policies for any reason within 10 days of delivery for a full refund of premiums

Business

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The ________ ratio measures the extent to which a firm is able to cover its short-term obligations (usually defined as obligations due within the next year) with its short-term assets

A) ROE B) current C) inventory turnover D) working capital

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Bank failure is less likely to occur when a bank

A) holds less in U.S. government securities. B) suffers large deposit outflows. C) holds more excess reserves. D) has less bank capital.

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