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Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.
The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in
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regular installments, to the lender. For example, in a ten-person, $5 game, there may be two players remaining with $29 and $21, respectively, worth of chips.
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A player who continually bets until they run out of money will give the house 100% hold.
Albert Einstein is reputed to have stated, "You cannot beat a roulette table unless you steal money from it."
Nevertheless, the numerous even-money bets in
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roulette have inspired many players over the years to attempt to beat the game by using one or more variations of a Martingale betting strategy, wherein the gamer doubles the bet after every loss, so that the first win would recover all previous losses, plus win a profit equal to the original bet. While on its face, FAS 113 is limited to accounting for reinsurance transactions, the guidance it contains is generally conceded to be equally applicable to US GAAP accounting for insurance transactions executed by commercial enterprises.
Does the contract contain adequate risk transfer?
FAS 113 contains two tests, called the '9a and 9b tests,' that collectively require that a contract create a reasonable chance of a significant loss to the underwriter for it to be considered insurance.
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such a land tax were taken up by subsequent economists (including Henry George a century later) as a relatively non-distortionary source of tax revenue. The telegraph instrument was
clicking there, too, signaling the world; a light showed in the office
behind a row of sickly geraniums; the wind came down through the cut and
across the tracks and swept the little platform