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6. Jack wants to purchase a new home. He will have to borrow $250,000 from Wells Fargo to help fund the purchase. As the home

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6. Jack wants to purchase a new home. He will have to borrow $250,000 from Wells Fargo to help fund the purchase. As the home will serve as collateral for the loan, Wells Fargo will only loan Jack the money if Jack purchases insurance on the home. Buying insurance on the property serving as collateral for a loan as a condition of the loan illustrates which benefit of insurance to society? a. financial intermediation b. indemnification of losses c. loss control incentives d. facilitation of credit e. expenses of insurance companies

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