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JAMB Economics 2020 Objective — Question 34

Question 34 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.

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Life insurance companies contribute to economic development by

  • A. holding a part of their assets in a long term financial instrumentsCorrect
  • B. money market instruments
  • C. cash
  • D. short-term financial instruments

Explanation

Life insurance firms invest the premiums they collect in long-term financial instruments, supporting economic development.

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