18-77 Many states in the U.S.impose liquid asset ratios on insurance companies which may be met by

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Many states in the U.S. require insurance companies to maintain a certain liquid asset ratio, which can be met by holding cash and government securities. These securities are considered safe and easy to quickly liquidate if needed to meet policyholder obligations. Choices A, B, and D may also be holdings of insurance companies, but they are not the only options to meet the liquid asset ratio requirement. Choice E, cash only, is unlikely as insurance companies typically hold a variety of assets to diversify their risk.

18-77 Many States in the U