n NISM Certifications
NSM General NISM
Medium

When deciding whether to insure, what should be evaluated?

Practice question from IC 38 Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Probability of an earthquake or ship sinking

  2. B

    Frequency of occurrence of a loss

  3. Cost of transferring the risk vs. cost of bearing it oneself

    Correct answer

  4. D

    Value derived from insuring an asset

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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