In Australia There Has Been a Substantial Expansion of Assets

question 67

Multiple Choice

In Australia there has been a substantial expansion of assets in the life insurance industry.Which of the following factors is one of the primary reasons for this?

• A) Increased confidence in life policies by individual investors
• B) Growth in superannuation funds
• C) Decreased cost of regulation by the Australian Financial Institutions Commission
• D) Rationalisation through mergers of small life insurance companies

---

Definitions:

Expected Rate of Return

The anticipated profit or loss on an investment, often based on historical data or statistical analysis.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Monetary Authorities

Institutions, typically government bodies or central banks, responsible for controlling a country's money supply and implementing monetary policy.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.