WAEC Economics 2007 Question 32

Question 32

Financial Institutions

A non-bank financial intermediary which is regarded as a pool of risks is the

  1. A.co-operative society
  2. B.stock exchange
  3. C.insurance company
  4. D.post office.
Show the answer and explanation

Answer: C (insurance company)

Explanation

An insurance company collects premiums from many people to cover the losses of a few: it pools risks.