The Ability to Automatically Buy Additional Fund Units Using the Dividend

question 51

Multiple Choice

The ability to automatically buy additional fund units using the dividend income generated by the fund is called a(n)

• A) automatic reinvestment plan.
• B) conversion plan.
• C) systematic withdrawal plan.
• D) automatic investment plan.

---

Definitions:

Condorcet Paradox

The Condorcet Paradox describes a situation in voting theory where collective preferences can be cyclical, even if individual preferences are not, leading to a lack of clear majority preference.

Pairwise Vote

A voting system where candidates are compared and voted on in pairs, with the winner being the one who wins the most direct comparisons.

Unanimity

A condition in decision-making where all members of a group fully agree on a specific decision or outcome.

Independence of Irrelevant Alternatives

A decision-making principle asserting that the relative preference between two options should not be affected by the introduction of a third irrelevant option.