16
QuizMultiple Choice

Asset-backed Securities, Loan Sales, and Derivatives — Test

Question 16 • (AG Q4) Financial Literacy: 25-26 (JRush)

Businesses typically purchase insurance mainly to _____.

Answer
A
prevent some types of risk
B
create manageable risk
C
eliminate some types of risk
D
have a way to pay for risk

Explanation

Businesses typically buy insurance to help cover the financial costs of losses if a risk occurs. Insurance does not prevent the event or eliminate the risk; it provides a way to pay for the resulting damage or loss. So the best answer is “have a way to pay for risk.”

AI-written and checked against the verified answer.

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