Explanation:
Explanation:
Option A is correct because banks must prioritize liquidity to meet depositor withdrawal demands, making it a paramount concern for their investments.
Option B is incorrect because endowments and foundations are usually designed to operate perpetually, with long-term investment horizons and allocations to alternative investments reflecting this.
Option C is incorrect because insurance companies typically manage their general accounts conservatively, focusing on fixed-income securities, while surplus accounts aim for higher returns through less conservative asset classes.
Ultimate access to all questions.
No comments yet.
Which of the following statements regarding investor types is most accurate?
A
For banks, the liquidity of their investment portfolio is a critical priority.
B
For endowments, the investment horizon is typically short due to immediate spending requirements.
C
For insurance companies, the risk tolerance of their general and surplus accounts is generally identical.