Functions of Each Institution And Its Importance - SS1 Economics Past Questions and Answers - page 1
Which type of financial institution provides loans to individuals and businesses?
Investment Banks
Insurance Companies
Mutual Funds
Hedge Funds
Commercial Banks
Which type of financial institution assists companies with mergers and acquisitions?
Investment Banks
Insurance Companies
Mutual Funds
Hedge Funds
Commercial Banks
Which type of financial institution invests premiums to generate returns that can be used to pay claims?
Investment Banks
Insurance Companies
Mutual Funds
Hedge Funds
Commercial Banks
Which type of financial institution pools money from many investors to purchase a diversified portfolio of securities?
Investment Banks
Insurance Companies
Mutual Funds
Hedge Funds
Commercial Banks
Which type of financial institution invests in a wide range of assets, such as stocks, bonds, currencies, and commodities?
Investment Banks
Insurance Companies
Mutual Funds
Hedge Funds
Commercial Banks
Why are insurance companies important in the economy?
Investment banks play an important role in helping companies raise capital and grow through mergers and acquisitions.
What is the main difference between mutual funds and hedge funds?
Mutual funds pool money from many investors to purchase a diversified portfolio of stocks, bonds, and other securities, while hedge funds invest in a wide range of assets, such as stocks, bonds, currencies, and commodities.