The Key Factor Causing Life Insurance Companies to Move into the Management

question 7

Multiple Choice

The key factor causing life insurance companies to move into the management of pension funds was

• A)the investment expertise of insurance companies.
• B)a request for this change by managers of pension funds.
• C)a change in state laws.
• D)a change in federal legislation in 1974 to encourage pension funds to turn fund management over to life insurance companies.

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Definitions:

Price Floors

A minimum price, set by law or agreement, below which a commodity cannot legally be sold, often used in agriculture to stabilize market prices.

Taxes

Compulsory financial charges imposed by a government on individuals, businesses, or transactions to fund public spending.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, engaged in professional, commercial, or industrial activities.

Labor Hours

Labor hours refer to the total number of hours worked by employees within a specified period, often used to measure productivity and labor costs.