Question

Which of the following groups have assets under management that are close in dollar value (within $2 trililon) to those of the banking system? Which are larger? Which are smaller? Cite data to support your answer. (a) Brokers and Dealers. (b) Pension Funds (including Private, State and Local Government, and Federal Government). (c) Mutual Funds (including stock and bond funds and money market mutual funds). (d) Insurance Companies (including life insurance and property casualty insurance companies)

Answer 1

Since, no particular country is indicated, we would consider the case for USA.

US Banks have total deposits of $15.4 trillion (as of June 3, 2020) (Source: https://www.cnbc.com/2020/06/21/banks-have-grown-by-2-trillion-in-deposits-since-coronavirus-first-hit.html)

(A.) Close- The US Brokers & dealers held at least US$ 16 trillion of assets under management in 2019.

Source- https://www.investopedia.com/investing/broker-dealer-firms/

(B.) Larger- The United States has a total of US$18.8 trillion worth of assets in pension funds at end-2019.

Source: http://www.oecd.org/pensions/Pension-Funds-in-Figures-2020.pdf

(C.) Larger- The total global net assets of mutual funds registered in the United States amounted to approximately 21.29 trillion U.S. dollars in 2019.

Sourec: https://www.statista.com/statistics/255518/mutual-fund-assets-held-by-investment-companies-in-the-united-states/

(D.)Smaller-  The total assets of insurance companies in the United States stood at US$9.98 trillion at the end of 2018.

(Source: https://www.statista.com/statistics/421718/insurance-companies-assets-usa/#:~:text=This%20statistic%20presents%20the%20total,trillion%20U.S.%20dollars%20in%202018.)