Multiple Choice

1.) REITs are required by law to distribute __________ of their taxable income to shareholders.

A.) 10%

B.) 50%

C.) 100%

D.) None of the above

2.) Which of the following is a typical barrier to entry for a new entrant into a new industry?

A.) Existing brand loyalty

B.) Buyer incentives

C.) Scarcity of resources

D.) All of the above

E.) None of the above

3.) Which of the following is true of defined benefit plans?

A.) Defined benefit plans are almost always fully funded

B.) Investors/employees do not own the account balances

C.) Defined benefit plans are often called pensions

D.) B and C

E.) All of the above

F.) None of the above

4.) __________ are a set of mutual fund or hedge fund strategies that trade commodity futures using technical analysis and macroeconomic forecasting.

A.) Global macro

B.) Managed futures

C.) TIPS

D.) None of the above

5.) Which of the following is a typical characteristic of REITs?

A.) There is a tax advantage to holding REITs

B.) REIT investments have low transparency

C.) REITs have higher liquidity as compared to owning physical real estate

D.) REITs offer high correlation with stocks

E.) None of the above

6.) __________ is demand side management through changes in interest rates.

A.) Monetary policy

B.) Fiscal policy

C.) Supply-side policy