Public Unit Trusts Are

question 30

Multiple Choice

Public unit trusts are:

• A)managed funds that invest in a range of publicly listed companies on the ASX
• B)managed funds that invest in a range of publicly listed companies across a range of markets
• C)a form of managed investment that can be bought and sold on a stock exchange each day like shares.
• D)investment funds that are governed by a trust deed.

---

Definitions:

Market Rate

The prevailing rate of interest available in the marketplace for securities of similar risk and maturity.

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, not necessarily its current market value.

Effective Interest Rate

The actual cost of borrowing or the actual yield on savings, taking into account the compounding of interest over time.

Market Interest Rate

The prevailing rate of interest that is available on investments, influencing the cost of borrowing and lending money.