Question
Listen to this video on You tube and answer the following questions: https://www.youtube.com/watch?v=ehZzU8hWv-4&feature=emb_title 1. Catastrophe bonds are an example of which of the following? Select
Listen to this video on You tube and answer the following questions: https://www.youtube.com/watch?v=ehZzU8hWv-4&feature=emb_title
1. Catastrophe bonds are an example of which of the following? Select one:
a. Coinsurance
b. Reinsurance
c. Securitization of insurance
d. Moral hazard in the insurance market
2. Why would investors want to invest in CATs? Select one:
a. Because the returns on these bonds are not correlated with the economy
b. Because central banks have held interest rates very low for a long time
c. Because institutions like pension funds need to earn higher interest rates to meet their obligations
d. For diversification and the "search for yield"
e .All of the above
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1 The answer is C Securitization of insurance Explanation Catastrophe bonds also called cat b...Get Instant Access to Expert-Tailored Solutions
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