Harrison Ford Has Invested in Something That Acts Like a Mutual

question 84

Multiple Choice

Harrison Ford has invested in something that acts like a mutual fund and that derives income from interest on property loans. He knows there are federal laws that require this type of investment to distribute at least 90 percent of the income to shareholders and that requires there be at least 100 shareholders. What type of investment has Harrison made?

• A) Limited partnership
• B) Equity REIT
• C) Mortgage REIT
• D) Hybrid REIT
• E) Participation certificate

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Definitions:

Inferior Good

A type of product whose demand decreases when the income of consumers increases, inverse to normal goods.

Income Increased

A scenario where an individual's or entity's earnings rise, affecting their purchasing power and economic well-being.

Income Elasticity

A measure of how the demand for a good or service changes relative to a change in consumers' income.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.