Select the correct answer.

Which financial item transfers risk from one party to another?

A. Insurance policy
B. Loan agreement
C. Savings account
D. Credit card



Answer :

Final answer:

Insurance is a financial item that shifts risk from one party to another through an exchange.


Explanation:

Insurance is a financial item that transfers risk from one party to another. Through insurance, individuals or organizations can protect themselves against uncertain outcomes in exchange for a fee. This process allows the party seeking insurance to transfer the potential risk to the insurance company.


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