The primary assets of a pension fund are ________.
A)money market instruments
B)bonds, stock and long term mortgages
C)consumer and business loans
D)bonds, stock and short term mortgages

Question

Quizplus · Accepted Answer

Pension funds invest primarily in long-term assets to match their long-term liabilities. Bonds, stocks and long-term mortgages are considered primary assets for a pension fund as they provide a steady income stream over time with the potential for capital appreciation. Money market instruments and short-term mortgages are typically used for short-term liquidity needs and are not primary assets for pension funds. Consumer and business loans are also not considered primary assets for pension funds as they are usually considered higher risk and more volatile.

The Primary Assets of a Pension Fund Are ________