Risk- pooling:

Question

Risk- pooling:

Quizplus · Accepted Answer

Risk-pooling is a form of insurance where a group of individuals or entities come together to share their risks by contributing to a common fund. This fund is then used to help any member who suffers a loss. Therefore, option C is the correct choice. Option A is incorrect because risk-pooling is commonly witnessed among close-knit communities as well. Option B is incorrect because while risk-sharing may involve sharing risks, it is not necessarily the same as risk-pooling. Option D is incorrect because risk-pooling can be relevant for any group that faces some form of risk.

Risk- Pooling