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6- A large managed fund will typically divide its assets between several professional fund managers. The main reason for this approach is to: provide better
6- A large managed fund will typically divide its assets between several professional fund managers. The main reason for this approach is to:
- provide better access to wholesale markets.
- manage risk and performance.
- reduce management costs.
- improve reporting to investors
7- Which of the following statements about life insurance offices is not correct?
- A whole-of-life policy will pay out when the policyholder dies whereas a term-life policy pays out if the insured person dies within a specified period.
- Both whole-of-life and term-life policies incorporate an investment component.
- In the case of both whole-of-life and term-life policies, the life insurance office will invest the premiums received.
- Over time, a whole-of-life policy will acquire a surrender value.
91- It is argued that a major weakness of the loanable funds approach is that a final equilibrium interest rate cannot be determined following a disturbance that affects the supply of, or demand for, funds. Which of the following statements best explains why this weakness exists?
- Any equilibrium identified using the loanable funds approach is only temporary.
- Dishoarding of loanable funds will continue for successive periods.
- Changes in the supply of funds are likely to cause changes in the demand for funds and vice versa.
- The rate of increase in the money supply varies over time
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