Households are increasingly likely to both directly purchase securities (perhaps via a broker)and also place some money with a bank or thrift to meet different needs. Match up the given investor's desire with the appropriate intermediary or direct security.
I. Money likely to be needed within six months
II. Money to be set aside for college in 10 years
III. Money to provide supplemental retirement income
IV. Money to be used to provide for children in the event of death
1. Depository institutions
2. Insurer
3. Pension fund
4. Stocks or bonds
A)2,3,4,1
B)1,4,2,3
C)3,2,1,4
D)1,4,3,2
E)4,2,1,3

Question

Quizplus · Accepted Answer

- Money likely to be needed within six months is best placed in a depository institution like a bank or thrift.
- Money to be used to provide for children in the event of death can be done through an insurer offering life insurance policies.
- Money to provide supplemental retirement income can be managed by a pension fund.
- Money set aside for college in 10 years can be invested in stocks or bonds for growth over time.

Households Are Increasingly Likely to Both Directly Purchase Securities (Perhaps