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Functions of Each Institution And Its Importance - SS1 Economics Past Questions and Answers - page 1

1

Which type of financial institution provides loans to individuals and businesses?

Ā 

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A

Ā Investment Banks

Ā 

Ā 

B

Insurance Companies

C

Mutual Funds

D

Hedge Funds

Ā 

E

Commercial Banks

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2

Which type of financial institution assists companies with mergers and acquisitions?

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A

Investment Banks

Ā 

B

Insurance Companies

C

Mutual Funds

D

Ā Hedge Funds

Ā 

E

Commercial Banks

Ā 

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3

Which type of financial institution invests premiums to generate returns that can be used to pay claims?

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A

Ā Investment Banks

B

Insurance Companies

Ā 

C

Mutual Funds

D

Hedge Funds

Ā 

E

Commercial Banks

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4

Which type of financial institution pools money from many investors to purchase a diversified portfolio of securities?

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A

Investment Banks

B

Insurance Companies

C

Mutual Funds

Ā 

D

Hedge Funds

Ā 

E

Commercial Banks

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5

Which type of financial institution invests in a wide range of assets, such as stocks, bonds, currencies, and commodities?

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A

Ā Investment Banks

Ā 

B

Insurance Companies

C

Mutual Funds

D

Hedge Funds

Ā 

E

Commercial Banks

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6

Why are insurance companies important in the economy?

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7

What is the main difference between mutual funds and hedge funds?

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Functions of Each Institution And Its Importance - SS1 Economics (Page 1) - EduPadi Classroom