Quiz Exerice

Please see attached file for complete quiz

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Question 1

The notion of risk is inextricably linked to the notion of uncertainty.

Question 1 option:

True

False

Question 2

A gambler is likely to be risk neutral.

Question 2 options:

True

False

Question 3

In the global credit crisis of 2008, what was the function of credit default swaps?

Question 3 options:

It derived or created credit for borrowers

It insured mortgage-backed securities

It guaranteed payment by the U.S. government

It insured insurance companies

It introduced financial instruments like mortgage-backed securities in the market

Question 4

Economists consider most widely held or publicly traded corporations as making decisions in a risk-neutral manner since their shareholders have the ability to diversify away risk.

Question 4 options:

True

False

Question 5

Which of the following is an example of risk?

Question 5 options:

Question 6

The legal system is designed to mitigate risks and is not intended to create new risks. Therefore, it does not have the power of transferring the risk from your shoulders to mine.

Question 6 options:

Question 7

Risk is not synonymous with uncertainty.

Question 7 options:

True

False

Question 8

What is a pre-condition to the element of risk?

Question 8 options:

Uncertainty

Outcomes

Loss

Opportunity

Accountability

Question 9

Managing risks associated with an objective of value maximization has succeeded more than managing risks when we use the context of minimization of losses.

Question 9 options:

True

False

Question 10

_____ is having two potential outcomes for an event or situation.