Question

Several market participants interact in developed markets to organize the exchange of funds from buyers to sellers. Such institutions as investment banks, commercial banks, financial services corporations, credit unions, pension funds, life insurance companies, mutual funds, exchange traded funds, hedge funds, and private equity companies play a key role in facilitating these transfers.

Required: Identify the financial institution based on each description given below:

a. These financial conglomerates provide a range of services, such as investment banking, commercial banking, and financial advising.
b. These are financial intermediaries that share the financial risk of the untimely demise of their policyholders, who make regular payments to financial intermediaries for taking this risk.
c. With the use of advanced investment techniques, these largely unregulated portfolios are invested in securities. The investment objective is to offset potential losses by investing in counterbalancing securities. They are open to only a select class of investors.

Answer 1

Answer:

a. financial services corporations

b. life insurance companies

c. hedge funds

Explanation:

a. financial services corporations

The financial services corporations provide different services, to people such as investment banking, commercial banking, and financial advising.

b. life insurance companies

They're financial intermediaries that share the financial risk of the untimely demise of their policyholders, who make regular payments to financial

c. hedge funds

Hedge fund is an investment that protects the portfolios from the uncertainties in the market while maximizing returns. The investment objective is to offset potential losses by investing in counterbalancing securities.