Question

1. Exchange Traded Funds have certain advantages over index mutual funds in terms of taxation

	A) True
	B) False

2. Private Equity Companies

	A) Hedge their assets through clever trading strategies.
	B) Issue non-marketable equity claims on themselves like Hedge funds.
	C) Report only consolidated statements to the SEC
	D) Issue equity securities only to wealthy households.
	E) Both B and D.

3. Captive structures are created by intermediaries to

	A) To create asset-backed securities.
	B) To avoid reporting obligations and assets that would otherwise have to be reported.
	C) To manage risk for the benefit of the intermediary.
	D) To avoid regulations that would otherwise be imposed on them.
	E) To be a source of fee income.
	F) All of the above.

4. Assets that have been used to create asset-backed securities include all of the following except,

	A) Mortgages.
	B) Credit card debt.
	C) Pension obligations.
	D) Commercial loans.
	E) Student loans.

5. While life insurance companies have portfolios that are similar to pension plans, the portfolios of property casualty companies tend to be shorter term, fixed income securities.

	A) True.
	B) False.

Answer 1

ANSWER 1 TRUE , Yes  Exchange Traded Funds have certain advantages over index mutual funds in terms of taxation

ANSWER 2 E Private Equity Companies Issue non-marketable equity claims on themselves like Hedge funds and Issue equity securities only to wealthy households.

ANSWER 3 F , Captive structures are created by intermediaries to To create asset-backed securities, To avoid reporting obligations and assets that would otherwise have to be reported, To manage risk for the benefit of the intermediary, To avoid regulations that would otherwise be imposed on them, To be a source of fee income.

ANSWER 4 C Assets that have been used to create asset-backed securities include all of the following except, Pension Obligation

ANSWER 5 A, Its true While life insurance companies have portfolios that are similar to pension plans, the portfolios of property casualty companies tend to be shorter term, fixed income securities.