Which Statement Best Defines a Mutual Fund

question 170

Multiple Choice

Which statement best defines a mutual fund?

• A) It is a financial market where small firms agree to sell stocks and bonds to raise funds.
• B) It is a fund set aside by a local government to lend to small firms who want to invest in projects that are beneficial to the firm and community.
• C) It is an institution that sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit.
• D) It is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks and bonds.

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Definitions:

Dependent Variable

Variable in an experiment that represents the measurable response or behavior of the subjects in the experiment.

Intensity of Shock

In experimental contexts, this refers to the strength or level of an electric shock administered, often used in research studying learning and behavior.

Group Conformity

The tendency of individuals to adjust their attitudes, opinions, or behaviors to align with the norms of a particular group or society.

Milgram

Refers to a series of social psychology experiments conducted by Stanley Milgram, demonstrating the willingness of participants to obey an authority figure's instructions to perform acts conflicting with their personal conscience.