Which One of the Following Would Best Describe a Mutual

question 52

Multiple Choice

Which one of the following would best describe a mutual fund?

• A)an investment that is available at many banks and is FDIC insured
• B)a company that manages a portfolio that is purchased by pooling the money of its investors
• C)a debt contract that is issued by a company and offers interest payment on the loan
• D)ownership of shares in a corporation with no guarantee the company will be profitable

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Definitions:

Services

Economic activities that result in intangible benefits or outputs, such as consulting, banking, or repair work.

Property

Assets owned by a person or a company, encompassing both physical objects and intellectual property.

Life Insurance Proceeds

The money paid to the beneficiaries of a life insurance policy when the insured person passes away.

Gross Income

Total income from all sources before deductions, exemptions, and taxes.