Life insurance companies attract a large proportion of their funds through regular premiums from policy holders.In regard to the matching principle,what types of assets would an insurance company hold the smallest proportions of?

Question

Quizplus · Accepted Answer

Money market securities are short-term, highly liquid investments that are typically used to meet short-term obligations. Insurance companies have long-term obligations to policyholders, so they would hold the smallest proportion of money market securities.

Life Insurance Companies Attract a Large Proportion of Their Funds