Which One of the Following Describes an Investment Company That

question 83

Multiple Choice

Which one of the following describes an investment company that generally has an unrestricted investment strategy and is not accessible to the general public?

• A)mutual fund
• B)open-end fund
• C)closed-end fund
• D)exchange-traded fund
• E)hedge fund

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Definitions:

Liquidity

The ease with which an asset or security can be converted into ready cash without affecting its market price.

Asset

An asset is a resource owned or controlled by an individual, corporation, or government with the expectation that it will produce positive economic value.

Cash

A form of liquid asset that includes currency and other easily accessible bank balances.

Prepaid Insurance

Refers to payments made in advance for insurance coverage, recorded as an asset on the balance sheet until the period to which the insurance relates.