312 PA R T I I I Financial Institutions 16 How hedge funds differ from mutual funds? *17 How private equity funds escape the free-rider problem? 18 What are the four advantages of private equity funds? *19 How have GSEs in the United States exposed taxpayers to large losses? WEB EXERCISES The Office of the Superintendent of Financial Institutions (OSFI) maintains extensive data on insurers Go to www.osfi-bsif.gc.ca and click on Life Insurance Companies & Fraternals and then on Financial Data Life Insurance Companies a Do life insurance companies make more mortgage loans than they invest in bonds and debentures? b Which type of asset has grown most rapidly over the last five years? c Repeat (a) and (b) for property and casualty insurers OSFI also maintains extensive data on nondepository credit intermediaries (known as finance companies) Go to its website at the address above, locate the data, and answer the following questions a Do finance companies make more personal loans than business loans? b Do they borrow more from the money market than the bond market? c Which type of asset has grown most rapidly over the last five years? Be sure to visit the MyEconLab website at www.myeconlab.com.This online homework and tutorial system puts you in control of your own learning with study and practice tools directly correlated to this chapter content