Mutual Funds Arose to

question 28

Multiple Choice

Mutual funds arose to

• A)reduce the transactions costs small savers incur when diversifying.
• B)take advantage of the tax breaks the federal government grants for diversified portfolios.
• C)provide home buyers with an inexpensive source of mortgage funds.
• D)provide personal financial advice to small savers.

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Definitions:

Obligation Tenders

Offers made to fulfill a duty or promise, particularly in a legal or financial context, such as repaying a debt.

Agency Termination

The process by which the relationship between an agent and their principal is ended.

Violation

The act of breaking or failing to comply with a rule, agreement, or law.

Agency Agreement

A legal contract in which one party (the agent) agrees to act on behalf of another party (the principal) in business transactions or other matters.