Which of the following is not a cash-value life insurance plan?

A firm faces a liquidity crunch and must decide between borrowing from a bank at 12% interest and stretching its payables for one quarter. If it stretches the payables it will forgo a 2% discount for timely payment. Based solely on cash flows, which would you suggest?

A) use the bank loan; forgoing a cash discount is costly B) use the bank loan because it represents simple interest C) stretch the payables and finance at a savings of approximately 3.76% annually D) stretching saves the firm approximately 8% per year

Which of the following is not a stated purpose of regulation?

A) Promote competition among the largest insurers in the state B) Maintain insurer solvency C) Deal with unique pricing problems that do not allow for full and unrestrained competition D) Promote social goals