Trades between risk lovers and risk takers
A)Move assets to lower-value use
B)Move assets to higher value use
C)Create wealth
D)Both B&C

Question

​Trades between risk lovers and risk takers
A)​Move assets to lower-value use
B)Move assets to higher value use
C)Create wealth
D)​Both B&C

Quizplus · Accepted Answer

When risk lovers and risk takers trade with each other, they create the possibility of moving assets to a higher value use (B), which can result in wealth creation for both parties (C). Therefore, the best choice is D, as both options B and C are correct. Option A (move assets to lower-value use) does not apply in this case, as the goal is to increase the value of assets through these trades.

​Trades Between Risk Lovers and Risk Takers

Trades Between Risk Lovers and Risk Takers