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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:

  1. provide better access to wholesale markets.
  2. manage risk and performance.
  3. reduce management costs.
  4. improve reporting to investors

7- Which of the following statements about life insurance offices is not correct?

  1. 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.
  2. Both whole-of-life and term-life policies incorporate an investment component.
  3. In the case of both whole-of-life and term-life policies, the life insurance office will invest the premiums received.
  4. 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?

  1. Any equilibrium identified using the loanable funds approach is only temporary.
  2. Dishoarding of loanable funds will continue for successive periods.
  3. Changes in the supply of funds are likely to cause changes in the demand for funds and vice versa.
  4. The rate of increase in the money supply varies over time

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