Financial institutions whose liabilities specify that,in return for the payment of periodic funds to the institution,the institution will make payments in the future (if and when a specified event occurs)are:
A) money market corporations.
B) unit trusts.
C) contractual savings institutions.
D) depository financial institutions.

Question

Quizplus · Accepted Answer

Contractual savings institutions issue liabilities such as insurance policies, annuities or pensions where they promise to make future payments if a specified event occurs (e.g. death, retirement). Money market corporations are non-bank financial institutions that issue short-term debt to raise funds, unit trusts are investment funds and depository financial institutions accept deposits and provide loans.

Financial Institutions Whose Liabilities Specify That,in Return for the Payment