Life insurance companies contribute to economic development by holding a part of their assets in

  • A Long-term financial instruments
  • B Equipment
  • C Cash and near money
  • D Money-market instruments
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The correct answer is A. Long-term financial instruments

Life insurance companies contribute to the development of the economy by keeping their investments in long-term financial instruments, which are then turned into productive investments.

Longterm instruments are financial instruments that have a maturity period of ten years and above.

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