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?
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A
 Investment Banks
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B
Insurance Companies
C
Mutual Funds
D
Hedge Funds
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E
Commercial Banks
2
Which type of financial institution assists companies with mergers and acquisitions?
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A
Investment Banks
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B
Insurance Companies
C
Mutual Funds
D
 Hedge Funds
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E
Commercial Banks
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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
Investment Banks
B
Insurance Companies
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C
Mutual Funds
D
Hedge Funds
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E
Commercial Banks
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
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D
Hedge Funds
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E
Commercial Banks
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
 Investment Banks
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B
Insurance Companies
C
Mutual Funds
D
Hedge Funds
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E
Commercial Banks
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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