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.
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