Question

1. If I need a safe place to store my money short term, I should put it in ___________.

a. Real Estate
b. Stocks
c. Bonds
d. T-Bills

2.Suitable investments should be evaluated with _______ in mind.

a. Risk
b. Expected return
c. Tax considerations
d. All of the above

3.Which of the following practices is prohibited by the Insider Trading and Fraud Act of 1988.

a. The use of nonpublic information to make profitable stock transactions
b. Selling of stock by officers of the company.
c. The granting of stock options to corporate executives in lieu of salaries.
d. Private sales of stock between executives of the company.

4. Socially responsible funds are distinguished from other mutual funds because they

a. Invest only in over-the-counter stocks.
b. Do not charge any sales commission or management fees.
c. Invest only in companies that meet specified moral, ethical, or environmental standards.
d. Will sell their shares only to investors who sign a statement saying they do not smoke tobacco or use alcohol.

ANSWER ALL or i will give you a thumbs down

Answer 1

1. If I need to place my money safely into short term, I will always look to put my money into treasury bills, because they are highly liquid as well as they are backed by government.

Correct answer is option (d) T-Bills

2. Suitable investment should be evaluated with keeping risk as well as return and tax considerations in mind.

Correct answer is option (d) all of the above

3. The use of non public information to make profitable stock transaction where prohibited by insider trading act of 1988.

Rest of the options are false because it did not prohibit selling of stock options or transaction between employees.

Correct answer is option ( A).

4. Socially responsible funds always invest into such companies who are ethical in nature and does not sell any unethical product.

All the options except option (C) are false as they specify differently.

Correct answer is option (C).