19. All of the following are true about “insurance” EXCEPT:
A.
B.
C.
D.
It is a social device for spreading loss over large numbers of people
It involves the pooling of large numbers of individual risks
It is a form of gambling because it may or may not pay
off
It transfers risk from one party to a group

He set of companies a product goes through on the way to the consumer is called the a. economic utility b. cottage industry c. market saturation d. distribution chain

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?

Alina davis expects to receive $2000 in six months her bank offers a loan at an annual rate of 5.60% how much could she borrow if she wants to be able to pay of the entire loan (including interest) with the $2000 she will receive in six months? a. $1923.78 b. $1945.53 c. $1887.94 d.$ 1845.57