Guaranteed investment contracts are contracts between:
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A. B. C. D.B
Guaranteed investment contracts (GICs) are contracts that are issued by insurance companies and designed to provide a fixed rate of return to the purchaser over a specified period of time. The correct answer to the question is B. GICs are contracts between an insurance company and a corporate retirement plan.
In a GIC, the purchaser (in this case, the corporate retirement plan) deposits a sum of money with the insurance company in exchange for a guaranteed rate of return. The insurance company invests the funds in a variety of assets, such as bonds, mortgages, and other fixed-income securities, with the aim of generating a return that is greater than the amount guaranteed to the purchaser.
The insurance company assumes the risk associated with the investments made with the purchaser's funds, and guarantees the return that was agreed upon. This guarantee is typically backed by the insurance company's own assets and reserves.
GICs are commonly used by retirement plans to provide a safe and secure investment option for plan participants. They are also used by other institutional investors, such as foundations and endowments, to generate stable returns on their investment portfolios.
In conclusion, the correct answer is B - Guaranteed investment contracts are contracts between an insurance company and a corporate retirement plan.