A Unit Investment Trust

question 109

Multiple Choice

A unit investment trust

• A) engages in short-term trading within a particular sector.
• B) offers a low-cost, diversified portfolio.
• C) is an unmanaged portfolio of securities.
• D) is used only for fixed-income securities.

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Definitions:

Liquid Investments

Assets that can be easily converted into cash with minimal loss in value, ensuring quick accessibility of funds when needed.

Administrative Reason

A justification or explanation based on the requirements or procedures of management or bureaucracy.

Emergency Needs

Immediate financial requirements that arise unexpectedly, requiring quick access to funds.

Lock Boxes

A cash management service offered by banks involving the collection of payments from a corporation's customers, aiming to reduce the time it takes for companies to receive payments.