CHAPTER 1 QUIZ 58 TO 62
58. A direct equity claim arises through investment in:
A. bonds and other debt instruments.
B. common stocks, warrants, and options.
C. preferred stock and commodity futures.
D. mutual funds.
E. None of the above
59. Investment in a mutual fund results in:
A. an indirect equity claim.
B. a direct equity claim.
C. a creditor claim.
D. None of the above
60. What factors must be considered in choosing between investment alternatives?
A. Risk and liquidity
B. Interest or dividends versus capital gains
C. Time frame for managing funds and evaluating performance and tax effects
D. Safety of principal
E. All of the above
61. The ability of the investor to convert an investment into cash in a short period of time is called:
A. short-term orientation.
B. low investment risk.
C. liquidity.
D. capital appreciation.
E. None of the above
62. Wealthy investors may prefer the favorable tax treatment of investments such as:
A. corporate bonds.
B. municipal bonds.
C. common stock.
D. preferred stock.
USA 
India