Question 30
Financial InstitutionsLife insurance companies contribute to economic development by holding a part of their assets in
- A.cash and near money
- B.money-market instruments
- C.equipment
- D.long-term financial instruments
Show the answer and explanation
Answer: D (long-term financial instruments)
Explanation
Life insurers have long-term liabilities, so they invest in long-term securities such as stocks and bonds, providing long-term funds for development.