Which of the Following Statements About Mutual Funds Is Correct

question 102

Multiple Choice

Which of the following statements about mutual funds is correct?

• A)A mutual fund is a financial intermediary.
• B)A mutual fund acquires its funds primarily by selling shares to the public.
• C)People who buy shares from a mutual fund accept all of the risk and return associated with the mutual fund's portfolio.
• D)All of the above are correct.

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Definitions:

Mixed Economy

An economic system blending elements of market, command, and traditional economies, featuring both private and public ownership of resources.

Public Enterprises

Government-owned organizations that operate in the commercial sector, intending to provide public services or generate revenue.

Core Inflation Rate

Inflation rate of an economy after energy and food prices are removed.

Energy And Food Prices

The costs associated with purchasing fuel, electricity, and edible items, which can significantly impact economic and living conditions.