Which One of the Following Terms Is Used to Identify

question 115

Multiple Choice

Which one of the following terms is used to identify a British perpetuity?

• A)ordinary annuity
• B)amortized cash flow
• C)annuity due
• D)discounted loan
• E)consol

---

Definitions:

Unit Investment Trust

An investment company that offers a fixed portfolio of stocks, bonds, or other securities, which is typically unmanaged, to investors for a specific period of time.

Fixed Portfolio

An investment strategy where the asset allocation is set for the long term and is not adjusted in response to market conditions.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities.

Management Fees

Charges levied by an investment manager for managing an investment fund's holdings.