A Fund That Exists When the Government Is the Sponsor

question 19

Multiple Choice

A fund that exists when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of the trust assets is a(n) :

• A) Agency fund
• B) Private-Purpose Trust Fund
• C) Investment Trust Fund
• D) Pension Trust Fund

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Definitions:

Bonds

A type of fixed-income investment where an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Asset Allocation

The strategy of distributing investments among various classes of assets to manage risk and enhance returns.

Abnormal Return

Abnormal Return is the difference in the actual return of a security over a set period of time from its expected return based on the market or model prediction.

Bonds

Fixed income investment products that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.