Which of the Following Had the Largest Percentage of Total

question 52

Multiple Choice

Which of the following had the largest percentage of total assets of financial intermediaries in the United States?

• A)Money market mutual funds
• B)Life insurance companies
• C)Private pension funds
• D)Commercial banks

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Definitions:

Zero Coupon

A bond or debt security that does not pay interest (a coupon) but is traded at a deep discount, providing profit at maturity when the bond is redeemed for its full face value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment cost.

Original Maturity

The fixed term length at the issuance of a bond or other fixed-income security until it reaches its due date for the repayment of the principal.

Current Yield

Current yield is the annual income (interest or dividends) divided by the current price of the security.