Question

Which of the following statements about risk-based financing is false?

A. risk-based financing is illegal and cannot be used by companies.
B. the greater the risk you are, the more you will pay. This is economics

Answer 1

B.

Step-by-step explanation:

Because the amount of benefit is not proportional to the amount of risks. That's is not profitable for any financial company, obviously they're not gonna finance some company that has high risk, because this scenario threats their profitability.

Answer 2

B. The greater the risk you are, the more you pay.