Which One of the Following Statements Is Correct Concerning Mutual

question 45

Multiple Choice

Which one of the following statements is correct concerning mutual funds?

• A)Mutual funds generally pay no taxes.
• B)Mutual funds are risk-free.
• C)Profits on the sale of mutual fund shares are tax-free.
• D)All mutual funds are diversified.
• E)Investments in mutual funds are guaranteed from loss by a private agency of the federal government.

---

Definitions:

In Personam Jurisdiction

The legal authority of a court to require a person to appear before it and to subject that person to its decisions.

In Rem Jurisdiction

A legal principle concerning the power a court has over an object or status rather than over a person, often used in property disputes.

Attachment Jurisdiction

A type of jurisdiction that allows a court to seize a defendant's property to satisfy a potential judgment before the court has made a decision on the merits of the case.

Race-Based Exclusions

Policies or practices that discriminate against individuals on the basis of race.