Q.Which of the following Aids to Trade removes the hindrance of risk in the movement and storage of goods?

Insurance is the aid to trade that specifically transfers the financial risk of loss (fire, theft, accident) from a trader to an insurance company in return for a premium.

Each Aid to Trade is matched to one specific hindrance it removes: Banking removes the hindrance of finance, Insurance removes the hindrance of risk, Transportation removes the hindrance of place, Warehousing removes the hindrance of time, and Advertising/Communication remove hindrances of information.

Option-by-option analysis:

• (a) Incorrect — Banking removes the hindrance of finance (providing credit and payment transfer), not risk of loss. …