Pension Funds and Insurance Companies

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What is the primary purpose of a pension fund set up by a business?

Trading securities in the stock market

Investing in high-yield securities

Providing health insurance to employees

Paying retirement benefits to private sector employees (correct)

Which of the following is NOT a product typically offered by insurance companies?

Fire insurance

Stock market investments (correct)

Crop insurance

Marine insurance

What is the primary source of income for an investment institution?

Engaging in goods and services trading

Buying and selling financial securities

Operating as an insurance provider

Earning interest or dividends from held securities (correct)

In the context of financial markets, what does 'market' refer to?

A place where goods and services are exchanged Signup and view all the answers

Which financial institution mainly engages in buying securities of other companies for investment purposes?

Investment Institutions Signup and view all the answers

What distinguishes an investment institution from other financial entities like retail banks?

Hold onto financial securities until maturity for investment purposes Signup and view all the answers

What is the main purpose of a savings and loan association?

Accumulating savings of members and stockholders for loans or investments Signup and view all the answers

Which institution mainly acts as a fiduciary agent or trustee on behalf of individuals or corporate entities?

Trust Company Signup and view all the answers

What role does a trust company play in managing assets?

Managing and registering ownership for the beneficiary Signup and view all the answers

Which financial institution is mainly controlled and operated by its members?

Credit Union Signup and view all the answers

What is the primary function of a credit union?

Extending credit to members Signup and view all the answers

What is the main purpose of credit unions mentioned in the text?

Pooling and accumulating funds for investment purposes Signup and view all the answers

Which financial institution focuses on using accumulated savings for loans or investments in productive enterprises?

Savings and Loan Association Signup and view all the answers

How do financial intermediaries differ from traditional banks?

They offer a wider range of financial services Signup and view all the answers

Which of the following is NOT considered a financial intermediary according to the text?

Commercial banks Signup and view all the answers

How do mutual funds raise money according to the text?

By pooling proceeds from stock and bond sales Signup and view all the answers

What distinguishes pension funds as financial intermediaries?

They accumulate money for investing in publicly-listed corporations Signup and view all the answers

Which statement best describes the role of insurance companies in the text?

Offering insurance products to individuals and businesses Signup and view all the answers

Pension Funds and Insurance Companies

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