What Is a Mutual Fund

question 31

Multiple Choice

What is a mutual fund?

• A) A mutual fund is a pool of funds established by corporate financial managers to provide for short-term business loans.
• B) A mutual fund is a loan to the federal government made by a business firm.
• C) Investors pool resources from individuals and business firms to purchase a portfolio of stocks, bonds, and short-term securities.
• D) A mutual fund consists of money raised by selling a share of ownership in a business firm.
• E) A mutual fund is a product of a mutual life company.

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Definitions:

Promissory Estoppel

A judicial principle that stops one from retracting a pledge given to another if the latter has justifiably depended on the promise to their disadvantage.

Disputed Amounts

Refers to the sums of money under contention between parties in transactions or contracts, often leading to negotiation or legal actions.

Satisfaction

The agreed-to settlement as contained in an accord.

Promises Under Seal

Legally binding agreements marked with a seal, signifying a formal commitment beyond a standard contract.