Financial instruments used primarily to transfer risk would not include:

Name: Financial instruments used primarily to transfer risk would not include:
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Question

Quizplus · Accepted Answer

While a bank loan may involve some risk, its primary purpose is not to transfer risk but rather to provide financing. Options and insurance policies, on the other hand, are specifically designed to transfer risk. Home mortgages may involve transferring some risk as well, but it is not their primary function.

Financial Instruments Used Primarily to Transfer Risk Would Not Include