If a Mutual Fund Holds a Substantial Amount of Treasury

question 50

Multiple Choice

If a mutual fund holds a substantial amount of Treasury bills, it is probably a:

• A) tax-exempt fund.
• B) conservative bond fund.
• C) bond income fund.
• D) money market mutual fund.

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Definitions:

Monthly Target Profit

The profit goal set by a business to achieve within a one-month period.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, illustrating how revenue growth translates into growth in operating income.

Net Operating Income

A company's revenue minus its operating expenses, excluding tax and interest, representing the profit from core business operations.

Sales Increase

A rise in the amount of products or services sold by a business within a specific period, indicating growth or an uptick in market demand.