瑞达-Rejda-保险教材英文练习题01

1Copyright©2011PearsonEducation,Inc.PrinciplesofRiskManagementandInsurance,11e(Rejda)Chapter1RiskinOurSociety1)Traditionally,riskhasbeendefinedasA)anysituationinwhichtheprobabilityoflossisone.B)anysituationinwhichtheprobabilityoflossiszero.C)uncertaintyconcerningtheoccurrenceofloss.D)theprobabilityofalossoccurring.Answer:CQuestionStatus:PreviousEdition2)ObjectiveriskisdefinedasA)theprobabilityofloss.B)therelativevariationofactuallossfromexpectedloss.C)uncertaintybasedonaperson'smentalconditionorstateofmind.D)thecauseofloss.Answer:BQuestionStatus:PreviousEdition3)Aninsurancecompanyestimatesitsobjectiveriskfor10,000exposurestobe10percent.Assumingtheprobabilityoflossremainsthesame,whatwouldhappentotheobjectiveriskifthenumberofexposuresweretoincreaseto1million?A)Itwoulddecreaseto1percent.B)Itwoulddecreaseto5percent.C)Itwouldremainthesame.D)Itwouldincreaseto20percent.Answer:AQuestionStatus:PreviousEdition4)Uncertaintybasedonaperson'smentalconditionorstateofmindisknownasA)objectiverisk.B)subjectiverisk.C)objectiveprobability.D)subjectiveprobability.Answer:BQuestionStatus:PreviousEdition5)Thelong-runrelativefrequencyofaneventbasedontheassumptionofaninfinitenumberofobservationswithnochangeintheunderlyingconditionsiscalledA)objectiveprobability.B)objectiverisk.C)subjectiveprobability.D)subjectiverisk.Answer:AQuestionStatus:PreviousEdition2Copyright©2011PearsonEducation,Inc.6)Whichofthefollowingstatementsaboutaprioriprobabilitiesiscorrect?A)Theyaresubjectiveprobabilitiesbasedonambiguityinthewayprobabilityisperceived.B)Theyaresubjectiveprobabilitiesthatmayvaryamongindividualsbecauseoffactorssuchasage,gender,education,andtheuseofalcohol.C)Theyareobjectiveprobabilitiesthatcanbedeterminedbydeductivereasoning.D)Theyareobjectiveprobabilitiesthatcanbedeterminedbysubjectivereasoning.Answer:CQuestionStatus:PreviousEdition7)Anindividual'spersonalestimateofthechanceoflossisA)anobjectiveprobability.B)anobjectiverisk.C)asubjectiveprobability.D)anaprioriprobability.Answer:CQuestionStatus:PreviousEdition8)AperilisA)amoralhazard.B)thecauseofaloss.C)aconditionwhichincreasesthechanceofaloss.D)theprobabilitythatalosswilloccur.Answer:BQuestionStatus:PreviousEdition9)AnearthquakeisanexampleofaA)moralhazard.B)peril.C)physicalhazard.D)objectiverisk.Answer:BQuestionStatus:PreviousEdition10)DensefogthatincreasesthechanceofanautomobileaccidentisanexampleofaA)speculativerisk.B)peril.C)physicalhazard.D)moralhazard.Answer:CQuestionStatus:PreviousEdition3Copyright©2011PearsonEducation,Inc.11)FakinganaccidenttocollectinsuranceproceedsisanexampleofaA)physicalhazard.B)objectiverisk.C)moralhazard.D)attitudinalhazard.Answer:CQuestionStatus:Revised12)CarelessnessorindifferencetoalossisanexampleofA)physicalhazard.B)objectiveprobability.C)moralhazard.D)attitudinalhazard.Answer:DQuestionStatus:Revised13)Somecharacteristicsofthejudicialsystemandregulatoryenvironmentincreasethefrequencyandseverityofloss.ThishazardiscalledA)moralhazard.B)physicalhazard.C)attitudinalhazard.D)legalhazard.Answer:DQuestionStatus:Revised14)TaylorTobaccoCompanyisconcernedthatthecompanymaybeheldliableinacourtoflawandorderedtopayalargedamageaward.ThecharacteristicsofthejudicialsystemthatincreasethefrequencyandseverityoflossesareknownasA)moralhazard.B)particularrisk.C)speculativerisk.D)legalhazard.Answer:DQuestionStatus:PreviousEdition15)AphrasethatencompassesallofthemajorrisksfacedbyabusinessfirmisA)financialrisk.B)speculativerisk.C)enterpriserisk.D)purerisk.Answer:CQuestionStatus:PreviousEdition4Copyright©2011PearsonEducation,Inc.16)Whichofthefollowingstatementsaboutfinancialriskis(are)true?I.Enterpriseriskdoesnotincludefinancialrisk.II.Financialriskiseasilyaddressedthroughthepurchaseofinsurance.A)IonlyB)IIonlyC)bothIandIID)neitherInorIIAnswer:DQuestionStatus:PreviousEdition17)AllofthefollowingareconsideredfinancialrisksEXCEPTA)thedeclineinthevalueofabondportfoliobecauseofrisinginterestrates.B)increasedcostofproductionbecauseofrisingcommodityprices.C)lossofmoneybecauseofadversemovementsincurrencyexchangerates.D)destructionofaproductionfacilitycausedbyanexplosion.Answer:DQuestionStatus:PreviousEdition18)KatelynwasjustnamedRiskManagerofABCCompany.ShehasdecidedtocreateariskmanagementprogramwhichconsidersalloftherisksfacedbyABC-pure,speculative,operational,andstrategic-inasingleriskmanagementprogram.Suchaprogramiscalleda(n)A)financialriskmanagementprogram.B)enterpriseriskmanagementprogram.C)fundamentalriskmanagementprogram.D)consequentialriskmanagementprogram.Answer:BQuestionStatus:PreviousEdition19)ApureriskisdefinedasasituationinwhichthereisA)onlythepossibilityoflossornoloss.B)onlythepossibilityofprofit.C)apossibilityofneitherprofitnorloss.D)apossibilityofeitherprofitorloss.Answer:AQuestionStatus:PreviousEdition20)TheprematuredeathofanindividualisanexampleofaA)purerisk.B)speculativerisk.C)fundamentalrisk.D)physicalhazard.Answer:AQuestionStatus:PreviousEdition5Copyright©2011PearsonEducation,Inc.21)Whichofthefollowingstatementsaboutspeculativerisksistrue?A)Theyarealmostalwaysinsurableb