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WAEC Economics 2019 Objective — Question 37

Question 37 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.

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Insurance companies are similar to commercial banks in that they

  • A. compensate their customers for losses
  • B. act as lender of last resort
  • C. help in maintaining monetary stability in a nationCorrect
  • D. help in mobilizing savings for investment

Explanation

Both insurance companies and commercial banks are financial institutions that help mobilize and channel savings into productive investment, contributing to monetary/financial stability.

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