The business that collects premiums and then provides long-term financing for large real estate projects is a(n)
A) commercial bank.
B) credit union.
C) mutual savings bank.
D) Federal Reserve Bank.
E) insurance company.

Question

Quizplus · Accepted Answer

The business described in the question is an insurance company, as they collect premiums from policyholders and invest those funds in real estate projects to generate long-term financing. Commercial banks, credit unions, and mutual savings banks are financial institutions that provide various banking services, but they do not typically specialize in real estate financing to the same extent as insurance companies. The Federal Reserve Bank is a central bank that regulates monetary policy and provides banking services to other banks, but it does not collect premiums or provide long-term financing for real estate projects.

The Business That Collects Premiums and Then Provides Long-Term Financing