1. when household buys fire insurance it is transferring, the loss associated with a fire in an insurance company. (T/F) 2. The concentration of credit risk should be managed with exposure limits. If credit risk is too concentrate a single error in judgment in granting credit can wipe out a firm's economic capital. (T/F) 3. Starbucks (SBUX) Buys all of its coffee beans on the spot market. managers believe that the price increases in price decreases average out over time and hedging with forward contract is too clostly. (T/F)