A financial arrangement to reduce risk. The purchaser of insurance pays a fixed amount, in return for which the seller agrees to pay some larger amount if an unlikely adverse event occurs. Source: Deardorffs' Glossary of International economics.
Browse by Subjects
Savings Association Insurance Fund (SAIF)
cost of carry
life assurance
repayment mortgage
See All Related Terms »

cost volume profit analysis
corporate raider
covered interest rate arbitrage
good until cancelled (GTC)
part payment