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.

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Popular Economy Terms

Institute for Supply Management (ISM)
option contract
National Insurance contribution
indirect taxation
short dated bill
tax-loss selling
backup withholding
inspector of weights and measures
post purchase costs