Investment companies are successful in attracting business away from banks and insurance companies primarily because they

Question

Quizplus · Accepted Answer

Investment companies offer savers cheaper access to the direct securities markets, allowing them to invest in a wider range of assets than typical bank or insurance products. This gives savers more control over their investments and potentially higher returns. Investment companies do not necessarily guarantee higher rates of return, remove interest rate risk, or have no liquidity risk. Lower loan rates are not typically the focus of investment companies.

Investment Companies Are Successful in Attracting Business Away from Banks