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WAEC Economics 2012 Objective — Question 29

Question 29 of 49 from the West African Examinations Council (WAEC) Economics 2012 Objective paper, with the correct answer and a full explanation.

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The financial institution that specializes in risk spreading is called a/an

  • A. investment bank
  • B. development bank
  • C. insurance companyCorrect
  • D. stock exchange

Explanation

Insurance companies are non-banking financial institutions which collect premiums from people to insure the property or life. They use the money collected for long term investment.

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