Answer:
I am a nut with a hole
Use me to reward good behavior.
There was a green house. Inside the green house there was a white house. Inside the white house there was a red house. Inside the red house there were lots of babies. What is it?
Only one color, but not one size, stuck at the bottom, yet easily flies. Present in sun, but not in rain, doing no harm, and feeling no pain. What am I?
My tail is long, my coat is brown. I like the country, I like the town. I can live in a house or live in a shed, and I come out to play when you are in bed. What am I?
Give it food and it will live, give it water and it will die.