The correct option when a nonprofit institution collects the savings of its members and invests those funds in a wide variety of assets to provide its members retirement benefit.
Answer to Problem 4MCQ
From the available options, the correct option is there is a pension fund.
Explanation of Solution
When a non-profit organization collects the saving of its members and then invest this saving in other assets so that it can provide a retirement benefit to its members, it will provide this benefit as a pension fund. Whereas, mutual funds, banks, loans, and life insurance companies are all financial systems that do not come under the non-profit organization.
Therefore, the correct option is d (pension fund) and all other options are incorrect.
Introduction: A non-profit institution is an institution whose aim is not profit-making but to serve society or members of the organization.
Chapter 22 Solutions
Krugman's Economics For The Ap® Course
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education