Savers who take advantage of the service of transfer risk offered by the financial system
A)often end up paying higher taxes.
B)do so by engaging in diversification.
C)will incur the cost of a lower return than if they had not taken advantage of the service.
D)do so exclusively through the banking system.

Question

Quizplus · Accepted Answer

Savers who take advantage of the service of transfer risk offered by the financial system will incur the cost of a lower return than if they had not taken advantage of the service. This is because the financial system charges a fee for this service, and this fee reduces the return that the saver would have earned if they had not taken advantage of the service.

Savers Who Take Advantage of the Service of Transfer Risk