Noelle Simon Is Buying Shares in a Mutual Fund That

question 56

Multiple Choice

Noelle Simon is buying shares in a mutual fund that only invests in companies located in the Latin America area.What type of mutual fund is this?

• A)Aggressive growth fund
• B)Equity income fund
• C)Global stock fund
• D)International fund
• E)Regional fund

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Definitions:

Collection Float

The time period between when a check is deposited in a bank and when the amount is available in the account, affecting cash flow management.

Interest Rate

The rate at which interest is imposed on a loan for the borrower, often expressed as an annual percentage of the outstanding loan.

Average Daily Float

The average amount of uncollected funds represented by checks in the process of clearing.

Collection Delay

The time lag between when a sale is made or service rendered and when the payment is actually received.