198k views
5 votes
A natural disaster is an example of what type of risk?

A.

Speculative risk


B.

Insurance risk


C.

Economic risk


D.

Pure risk

User Tobalr
by
7.7k points

2 Answers

4 votes
I think it's D a pure risk
User LarsAnders
by
6.7k points
1 vote

Answer:

D.Pure risk

Step-by-step explanation:

Risk exists whenever there is uncertainty about some cause that can lead to financial loss, such as economic downturns, financial speculation, theft, etc. In the case of natural disasters, called pure risk, immeasurable financial loss can occur, such as the destruction of a home or business. To prevent this kind of risk, you can hire an insurer who will take out specific insurance, such as for your home. Should a hurricane, flood or any other natural disaster occur, you will be compensated for your loss.

User LDNZh
by
6.8k points