No-Load Mutual Funds Compensate Investment Managers and Salespeople by

question 57

Multiple Choice

No-load mutual funds compensate investment managers and salespeople by

• A) charging a small fee for each purchase/sale.
• B) charging a fee based on the performance of the fund.
• C) charging a fee based on the value of the fund's assets.
• D) charging brokers a fee to sell the shares.

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Definitions:

Public Saving

Public saving refers to the surplus of government revenues over government spending. It's a component of national savings along with private savings.

Private Saving

The portion of household and business income that is not spent on current consumption but instead is saved or invested for future use.

Government Budget Deficit

A financial shortfall where a government's expenditures exceed its revenues.

Investment

The allocation of resources, usually money, into assets with the expectation of generating income or profit in the future.