Of the following financial intermediaries, which holds the least liquid assets?

Question

Quizplus · Accepted Answer

Life insurance companies typically have the least liquid assets among the given financial intermediaries as they invest long-term in assets like real estate, corporate bonds or equities which cannot be easily sold. In contrast, money market mutual funds hold highly liquid, short-term securities like government bonds or commercial paper, making them more liquid than life insurance companies. Property and casualty insurance companies and commercial banks also hold relatively more liquid assets in their investment portfolios, with the former holding mainly fixed-income securities and the latter being regulated to maintain a minimum reserve requirement.

Of the Following Financial Intermediaries, Which Holds the Least Liquid