Question

All of the following are examples of real assets except:

a. A warehouse

b. A hammer

c. A dataset containing information about the most popular flavor of ice cream in each county in Nebraska

d. An insurance policy

Please select all examples of primary markets:

a. A department store

b. An auction of USG debt held by the US Treasury

c. A Salvation Army store

d. The New York Stock Exchange, for most transactions

You are a retail investor considering investing in a mutual fund, but expect to liquidate the investment in 1 year. The best option for you would probably be a:

a. Class A fund

b. Class C fund

c. Class B fund

d. Class I fund

Answer 1

1. A real asset means an asset which exist in.physical terms. Hence option (c) a data set containing information about the most popular flavor of ice cream in each country in Nebraska is not a real asset. All other three are real assets.

2. An auction of USG debt held by the US treasury is an example of primary market. Hence option b is correct. All other options are examples of secondary market and not.primary market.

3. Class C fund is the best option for short term investment .Hence option b is correct. Class A and class B funds are for long term investment and class I fund is for sale to instiutional investors.