Characteristics, Uses and Taxation of Investments - Sample Questions 8 - 13

  1. Bearish market positions include all of the following, except
    1. Short sale
    2. Write puts
    3. Buy puts
    4. Sell calls
  2. A money market mutual fund would most likely contain all of the following investments, EXCEPT
    1. Commercial paper
    2. Treasury bonds with less than one year to maturity
    3. Treasury notes
    4. Banker's Acceptances
  3. With respect to Ginnie Maes
    1. Interest income is state tax free.
    2. Denominations are $25,000.
    3. Income is derived from student loan payments.
    4. The bonds have the implicit backing of the full faith and credit of the United States.
  4. Futures and forwards have in common the following features, EXCEPT FOR
    1. Liquidity.
    2. Potentially unlimited risk.
    3. Use as a risk management tool.
    4. Can be based on a variety of underlying instruments.
  5. Benefits of tangible assets exclude
    1. Potential for massive appreciation.
    2. Liquidity and marketability.
    3. Readily determinable value.
    4. Tax advantages
    5. I
    6. I, II, III, IV
    7. III, IV
    8. II, III, IV
  6. Treasury Bills are
    1. Backed by the full faith and credit of the United States government.
    2. Quote their yield as a percentage of par value.
    3. May be found in a money market fund.
    4. Are taxable at all levels.
    1. I
    2. I & II
    3. I & III
    4. I, II, III & IV
Sample Questions 14 - 19


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