Relative to life insurance companies, property and casualty insurance companies hold Question 2 options: A) fewer municipal bonds. B) more commercial mortgages. C) more liquid assets. D) more long-term government bonds.

The correct answer is letter "C": more liquid assets.

Explanation:

Property and casualty insurance covers insureds in front of damages to a property structure or the belongings inside it in accidental situations, vandalism or burglaries. Life insurances are purchased so a benefit can be provided to the policy holder's beneficiary in case of his or her decease.

Property and casualty insurances are said to hold liquid assets since they deal with the coverage of tangible objects that can be easily converted in cash. Though, life insurance does not deal with materials. It only provides monetary or valuable benefits after the pass away of the insured.