Which of the Following Statements with Regard to Life Insurance

question 94

Multiple Choice

Which of the following statements with regard to life insurance companies is true?

• A) Life insurance companies are more likely to acquire short-term assets than long-term securities, for liquidity reasons.
• B) Life insurance companies are more likely to acquire long-term assets because their liabilities are long-term in nature.
• C) Life insurance companies tend to acquire short-term assets because they have relatively predictable inflows and outflows.
• D) The Reserve Bank of Australia regulates life insurance companies.

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Definitions:

Thomas Malthus

An English economist and demographer best known for his theory that population growth will outpace agricultural production, leading to widespread poverty and societal collapse unless checked by factors like famine, disease, or war.

Population Growth

The increase in the number of individuals in a population, measured by natural growth (births minus deaths) and net migration.

Communist Ideology

A socio-political ideology advocating for a classless society in which all property and means of production are communally owned, aiming to eliminate social inequalities.

Mao Tse-tung

A Chinese communist revolutionary who became the founding father of the People's Republic of China in 1949, serving as its chairman until his death.