Question

What is the primary purpose of contingency products like insurance in the financial market?

a.

To commit money for making more money

b.

To provide protection against large losses from unforeseen events

c.

To ensure liquidity for everyday expenses

d.

To accumulate wealth over time

Answer: (b).To provide protection against large losses from unforeseen events Explanation:Contingency products like insurance serve the purpose of providing protection against large losses that may be suffered in the event of unforeseen events.

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Q. What is the primary purpose of contingency products like insurance in the financial market?

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