Property and casualty insurance companies tend to invest heavily in municipal bonds because
A) the bonds have higher yields than corporate bonds.
B) property and casualty insurance companies are required by regulators to hold at least 20 percent of their assets in the form of municipal bonds.
C) the bonds are tax-exempt.
D) they hold large state and local government pension funds, thus requiring them to hold an equal amount of municipal bonds.
C
You might also like to view...
The supply of milk in Nexus City is perfectly elastic. If a tax is imposed on each gallon of milk sold, ________
A) the burden of the tax will fall entirely on the sellers B) the burden of the tax will fall entirely on the buyers C) the tax incidence on the sellers is higher than that on the buyers D) the deadweight loss due to taxation is zero
Labor-market regulations in developing countries
a. always reduce employment b. usually reduce employment c. may reduce employment, but the evidence is weak d. rarely reduce employment e. none of the above