SIE Exam Question 712: Answer and Explanation

Question: 712

Which of the following are established by states to provide other governmental entities (e.g., cities, counties, and school districts) with a short-term investment vehicle to purchase shares or units in an investment portfolio?

• A. GICs
• B. HOLDRs
• C. LGIPs
• D. UITs

Correct Answer: C

Explanation:

LGIPs (local government investment pools) are established by states to provide other governmental entities (e.g., cities, counties, and school districts) with a short-term investment vehicle to purchase shares or units in an investment portfolio.