Funds among short-term investment instruments is called

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Reference no: EM131589593

1. Most people set financial goals early in life and these goals rarely change.

True

False

2. You are a member of a defined-benefit plan that pays a two percent benefit for each year of service based on your best five year's earnings. If you qualify for an unreduced pension and have worked for the company for 30 years, your pension will be

a. 60 percent of the average of your best five years' earnings.

b. 60 percent of the average of your last five years' earnings.

c. 50 percent of the average of your best five years' earnings.

d. The answer is unknown because the benefit must be calculated by an actuary.

3. If IIROC limits the margin on O stock to 70 percent, initially how much money would you need to personally invest to purchase $10 000 worth of BMO stock?

a. $7000

b. $3000

c. $10 000

d. It depends on the price

4. The primary market is used by firms to raise funds and is a market where newly issued securities are traded.

True

False

5. How much money to retain in a liquid form and how to allocate funds among short-term investment instruments is called

a. money management.

b. investment management.

c. credit management.

d. liquidity management.

Reference no: EM131589593

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