One of the financial institutions that operates by collecting premiums from clients is called ..... .

FINANCIAL MARKETS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

One of the financial institutions that operates by collecting premiums from clients is called ____ .

A	brokerage
B	credit union
C	investment banks
D	insurance companies

Explanation:

Detailed explanation-1: -Insurance companies collect premiums for policies and provide policy benefits.

Detailed explanation-2: -Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops.

Detailed explanation-3: -Insurance turn accumulated capital into productive investments. Insurance also enables mitigation of losses, financial stability and promotes trade and commerce activities those results into sustainable economic growth and development. Thus, insurance plays a crucial role in the sustainable growth of an economy.

Detailed explanation-4: -Commercial Banks. Commercial banks are generally stock corporations whose principal obligation is to make a profit for their shareholders. Savings and Loans/Savings Banks. Credit Unions.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS