Which of the following is an example of the economies of scope argument for increased profits for large financial holding companies?
Which of the following is an example of the economies of scale argument for increased profits for large financial holding companies?
A homeowner discovers that a large tree in his yard is diseased and may fall in a bad windstorm and if it falls, it will likely destroy the garage. The cost to have the tree cut down is significant but the homeowner has an insurance policy and figures that if the tree falls and destroys the garage, the insurance company will pay, and the deductible is less than the cost to have the tree removed. This is an example of:
The Glass-Steagall Act of 1933:
Property and casualty insurers will hold assets of shorter maturities than life insurance companies because:
The actual results of the McFadden Act included:
An insurance company provides liability insurance to a restaurant protecting the owner against claims from customers. One area of coverage is protections against food poisoning claims. The insurance company may periodically send an employee into the restaurant to observe food preparation and food storage processes. The insurance company is trying to avoid:
In a defined-contribution plan:
A young father needing to provide his family with financial security would be better off purchasing:
Whole life insurance differs from term life in which of the following ways?
A. Whole life has a variable premium over the life of the policy, increasing as the policyholder gets older.
Term life has a fixed premium forever
B. Term life has a savings component whole life is pure insurance
C. Term life is usually more expensive than whole life
D. Whole life is a combination of term life insurance and a savings account
Many states prohibited bank branching because of all of the following except:
A. They feared the concentration and monopoly power of large banks
B. They generated significant revenue from issuing bank charters
C. They wanted to protect the profits of banks since they generated tax revenue from these profits
D. The McFadden Act of 1927
In most companies, an employee must work for a number of years before qualifying for pension benefits. This process is referred to as:
In many cases, life insurance companies will require applicants to take a physical. This is done to avoid the problem of: