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WAEC Economics 2019 Question 37

Question 37

Financial Institutions

Insurance companies are similar to commercial banks in that they

  1. A.compensate their customers for losses.
  2. B.acts as lender of last resort.
  3. C.help in maintaining monetary stability in a nation.
  4. D.help in mobilizing savings for investment.
Show the answer and explanation

Answer: D (help in mobilizing savings for investment.)

Explanation

Both collect funds (deposits or premiums) and invest them.