Which of the following financial intermediaries has shown a preference for investing in long-term financial assets?

Question

Quizplus · Accepted Answer

Insurance companies typically invest in long-term financial assets such as bonds, real estate, and equities as they have a long-term perspective on their liabilities and the need to generate returns to meet those obligations. Other intermediaries such as commercial banks and savings banks invest in a mix of short-term and long-term assets. Finance companies typically specialize in short-term lending and asset-based financing, so they may not necessarily have a preference for long-term financial assets.

Which of the Following Financial Intermediaries Has Shown a Preference