60. Insurance companies can usually cover the claims of policyholders because: A. the incidence of claims normally averages out. B. they issue thousands of insurance policies. C. the cost of paying...

60. Insurance companies can usually cover the claims of policyholders because:

A. the incidence of claims normally averages out.
B. they issue thousands of insurance policies.
C. the cost of paying for claims has already been factored into the price of the policies.

D.
All of these

AACSB: Reflective Thinking Skills
Bloom's: Understanding
Difficulty: Medium
Learning Objective: 2-2

61. Which of the following is not typically considered a function of financial intermediaries?

A. Providing a payment mechanism

B.
Investing in real assets
C. Accumulating funds from smaller investors
D. Spreading, or pooling risk among individuals

AACSB: Communication Abilities
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 2-2

62. U.S. bonds and other debt securities are mostly held by:


A.
institutional investors.
B. households.
C. foreign investors.
D. state and local governments.