SIE practice questionhardLGIPs
A Local Government Investment Pool (LGIP) is:
- AA type of mutual fund available to retail investors
- BA type of corporate bond issued by local governments
- CA pooled investment vehicle that allows local governments to invest public funds, often similar to money market funds✓ Correct answer
- DA real estate investment trust for government-owned properties
Explanation
Why C — A pooled investment vehicle that allows local governments to invest public funds, often similar to money market funds
LGIPs are investment pools operated by state governments that allow local government entities (cities, counties, school districts) to pool their public funds for more efficient investing. They operate similarly to money market funds, investing in short-term, high-quality instruments. They are NOT available to retail investors and are designed to help governments earn returns on idle public funds while maintaining safety and liquidity.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Equity Securities questions
- An Exchange-Traded Note (ETN) differs from an ETF primarily because an ETN:
- A banker's acceptance is primarily used to:
- Which of the following is true regarding ownership rights of common stockholders?
- Commercial paper is typically issued by:
- Which type of stock is typically eligible for dividend payments that are not guaranteed and may vary?
- Which of the following is a money market instrument?
- Preferred stock is called 'cumulative' because:
- An investor in mortgage-backed securities (MBS) faces which unique risk when interest rates decline?