An insurance company brings a large group of customers together in order to: 

a. Pool risk so that individual customer risk is lowered

b. Pool risk so that individuals get a regular return

c. Lower risk for the entire community and all industries

d. Provide a tax base for the government

 

From a business perspective, which of the following is not true about banks? 

a.  By providing loans to a company, banks provide a signal on the health of a company

b.  A well-run banking system sends a strong signal to the global financial markets on the macroeconomic health of a nation

c.  Banks typically exert control over a debtor company by appointing its chief financial officer

d.  Banks can assist companies in growing their business internationally

 

An Australian commercial bank would typically provide the following services to its business clients: 

a.  Overdrafts, mortgages and initial public offerings

b.  Overdrafts, long-term loans and letters of credit

c.  Long-term loans, mortgages and debt securitization

d.  Long-term loans, overdrafts and securities sale

 

A company purchases an insurance policy in order to: 

a.  ensure no loss occurs

b.  reduce the loss it incurs

c.  physically protect its assets from theft

d.  recover from a bad business decision