What Type of Mutual Fund Issues "Redeemable Securities" Meaning That

question 49

Multiple Choice

What type of mutual fund issues "redeemable securities" meaning that the fund stands ready to buy or sell the shares at their net asset value with a transaction fee?

• A) No-load, closed-end fund
• B) No-load, open-end fund
• C) Load, closed-end fund
• D) Load, open-end fund
• E) None of the above

---

Definitions:

CCA Class

refers to the Capital Cost Allowance Class, a categorization used in Canadian tax to determine the depreciation rate for tax purposes on assets.

Annual Depreciation

The method of allocating the cost of a tangible asset over its useful life on a yearly basis.

Cost of Debt

The effective rate that a company pays on its total debt, reflecting the expense of borrowing funds.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.