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

1

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

 

A

 Investment Banks

 

 

B

Insurance Companies

C

Mutual Funds

D

Hedge Funds

 

E

Commercial Banks

CORRECT OPTION: e
2

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

A

Investment Banks

 

B

Insurance Companies

C

Mutual Funds

D

 Hedge Funds

 

E

Commercial Banks

 

CORRECT OPTION: a
3

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

A

 Investment Banks

B

Insurance Companies

 

C

Mutual Funds

D

Hedge Funds

 

E

Commercial Banks

CORRECT OPTION: b
4

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

A

Investment Banks

B

Insurance Companies

C

Mutual Funds

 

D

Hedge Funds

 

E

Commercial Banks

CORRECT OPTION: d
5

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

A

 Investment Banks

 

B

Insurance Companies

C

Mutual Funds

D

Hedge Funds

 

E

Commercial Banks

CORRECT OPTION: c
6

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.

7

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.

 

Pages: