Which of the following statements about insurance companies is NOT correct?

A.

Insurance companies charge their clients management fees by providing investment advisory services.

B.

Insurance companies use partial premiums they collected from clients to invest in financial market instruments.

C.

Insurance companies sell insurance products to their clients and charge their clients premiums.

D.

Insurance companies are one of financial institutions.

Which of the following securities is NOT traded in capital market?

	A.	Municipal bonds
	B.	Treasury notes
	C.	Common stocks sold by McDonalds
	D.	Treasury bills

hich of the following is NOT a popular strategy to mitigate agency problem?

	A.	Selling the stocks so that potential competitors may be able to buy out majority of stocks to acquire the company that managers do not perform well.
	B.	Compensating managers in such a way that acting in the best interest of shareholders is also in the best interest of managers.
	C.	Requesting board of directors to take actions to better monitor managers performance.
	D.	Giving managers more authorities in the hiring process.