__________________ are the two important forms of contractual savings organizations.

Question

Quizplus · Accepted Answer

Contractual savings organizations are entities that pool financial resources from individuals and invest them in financial instruments, such as stocks, bonds, and real estate. The two most important forms of contractual savings organizations are insurance companies and pension funds. Insurance companies pool premiums from policyholders and invest the funds in financial instruments to generate returns to pay policyholders' claims and earn profits. Pension funds are formed by employers to pool retirement savings from employees and invest them in financial instruments to generate returns for the employees' retirement benefits. Therefore, option A is the correct answer.

__________________ Are the Two Important Forms of Contractual Savings Organizations