Question 20
Financial InstitutionsWhich of the following is not a function of an insurance company?
- A.Mobilization of funds through premiums collected
- B.Encouragement of savings habit through life assurances
- C.Collection of deposits from the public
- D.Granting of loans on long-term basis for investment
- E.Encouragement of investment by security of capital
Show the answer and explanation
Answer: C (Collection of deposits from the public)
Explanation
Insurance companies collect premiums, not deposits; accepting deposits is done by banks.