Which of the following is not a contractual savings institution?
A) A life insurance company
B) A pension fund
C) A finance association
D) A property and casualty insurance company

Question

Quizplus · Accepted Answer

Contractual savings institutions are financial institutions that receive funds from individuals and channel them into long-term investments such as infrastructure projects, housing, and corporate stocks. Life insurance companies and pension funds are both examples of contractual savings institutions, as they pool funds from many individuals and invest them into long-term assets on behalf of their policyholders/investors. Property and casualty insurance companies may also invest some of their funds into long-term assets, but their primary purpose is to provide insurance coverage for physical and liability risks. Finance associations, on the other hand, do not fall under the definition of a contractual savings institution as they do not pool savings from individuals and invest them into long-term assets.

Which of the Following Is Not a Contractual Savings Institution