RMI 2303 QUIZ 1,2,3,4,5 WITH 100% VERIFIED ANSWERS
Fundamental risks - ANSWER Risks affecting a large portion of the population at a given
time are which of the following?
Risk-averse - ANSWER Tom is a college student at FSU. He has the option to buy a
parking pass at the beginning of the year for $250. If Tom doesn't buy the pass, he has to
park on the street or pay the valet parking service $5 per day. If Tom does not purchase
the parking pass, he estimates that he will have to use the valet parking services 40
times. He acknowledges, though, that he could use the valet service as many as 80
times. Tom decides that he would rather pay the $250 than risk not being able to find a
spot on the street. Tom could be described as which of the following:
Economy - ANSWER Which of the following is a common pre-loss objective?
liability - ANSWER Karen won't let any of the neighborhood children into her yard
because she has a big swimming pool and doesn't want any to fall in, thus having to bear
the responsibility for the hurt of a child. What is the type of risk that Karen is attempting
to avoid?
combination of all - ANSWER Which of the following method(s) best identifies all the
risks faced by an organization?
-questionnaires
-checklists
-procedure guides
financial impact of losses - ANSWER Loss severity describes which of the following?
both - ANSWER Why should we measure loss severity?
-risk classification
, -determination of transfer (insurance) amount
tangible (physical) and intangible - ANSWER Hazards may be categorized by which of
the following groups?
need for larger emergency funds - ANSWER Imagine a world where health insurance
doesn't exist. On the upside, you don't have to pay any health insurance premiums! On
the downside, if you become sick you're responsible for the full amount of your
healthcare. What if you had children? The risk of unknown payments for healthcare
would require all of us to save a much larger amount of money to set aside just in case
we needed it. This burden would be in what type of the following categories?
physical hazard - ANSWER Gary works in a factory where the workers are known to
leave oily rags all over the place. Which of the following best describes the oily rags?
high frequency losses - ANSWER Risk prevention methods are best applied to?
peril - ANSWER Which of the following terms describes the immediate cause of loss?
certain vs. uncertain - ANSWER Which of the following is NOT a method of categorizing
risk?
-pure vs. speculative
-static vs. dynamic
-core vs. secondary
-certain vs. uncertain
moral/morale - ANSWER Donna has a home that is insured to its maximum value. She
often leaves the door unlocked in case she forgets her keys. She knows that her
insurance policy will pay for any losses if her home is robbed. Which of the following
best applies to Donna?
-moral/morale hazard
Fundamental risks - ANSWER Risks affecting a large portion of the population at a given
time are which of the following?
Risk-averse - ANSWER Tom is a college student at FSU. He has the option to buy a
parking pass at the beginning of the year for $250. If Tom doesn't buy the pass, he has to
park on the street or pay the valet parking service $5 per day. If Tom does not purchase
the parking pass, he estimates that he will have to use the valet parking services 40
times. He acknowledges, though, that he could use the valet service as many as 80
times. Tom decides that he would rather pay the $250 than risk not being able to find a
spot on the street. Tom could be described as which of the following:
Economy - ANSWER Which of the following is a common pre-loss objective?
liability - ANSWER Karen won't let any of the neighborhood children into her yard
because she has a big swimming pool and doesn't want any to fall in, thus having to bear
the responsibility for the hurt of a child. What is the type of risk that Karen is attempting
to avoid?
combination of all - ANSWER Which of the following method(s) best identifies all the
risks faced by an organization?
-questionnaires
-checklists
-procedure guides
financial impact of losses - ANSWER Loss severity describes which of the following?
both - ANSWER Why should we measure loss severity?
-risk classification
, -determination of transfer (insurance) amount
tangible (physical) and intangible - ANSWER Hazards may be categorized by which of
the following groups?
need for larger emergency funds - ANSWER Imagine a world where health insurance
doesn't exist. On the upside, you don't have to pay any health insurance premiums! On
the downside, if you become sick you're responsible for the full amount of your
healthcare. What if you had children? The risk of unknown payments for healthcare
would require all of us to save a much larger amount of money to set aside just in case
we needed it. This burden would be in what type of the following categories?
physical hazard - ANSWER Gary works in a factory where the workers are known to
leave oily rags all over the place. Which of the following best describes the oily rags?
high frequency losses - ANSWER Risk prevention methods are best applied to?
peril - ANSWER Which of the following terms describes the immediate cause of loss?
certain vs. uncertain - ANSWER Which of the following is NOT a method of categorizing
risk?
-pure vs. speculative
-static vs. dynamic
-core vs. secondary
-certain vs. uncertain
moral/morale - ANSWER Donna has a home that is insured to its maximum value. She
often leaves the door unlocked in case she forgets her keys. She knows that her
insurance policy will pay for any losses if her home is robbed. Which of the following
best applies to Donna?
-moral/morale hazard
