Personal Trusts Are Typically Allowed to Engage in Which of the Following

question 13

Multiple Choice

Personal trusts are typically allowed to engage in which of the following investment activities?
I. Buying and selling futures contracts.
II. Short-selling securities.
III. Purchasing and writing options.
IV. Buying stock on margin.

• A) I only
• B) II and III only
• C) II and IV only
• D) None of the given activities are allowed.

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Definitions:

Marginal Utility

The added satisfaction or utility gained from consuming an additional unit of a good or service.

Spending

Engaging in transactions to acquire goods or services by spending money.

Income

Earnings accrued from work or investment sources on a consistent basis.

Goods

Physical items that satisfy human wants or needs, which can be bought, sold, or traded.