The Difference Between Stock Mutual Funds and Bond Mutual Funds

question 76

True/False

The difference between stock mutual funds and bond mutual funds lies in the percentage of stocks and bonds that each fund purchases.

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Definitions:

Police Power

The capacity of a state to regulate behaviors and enforce order within its territory, mainly in areas concerning health, safety, and morals.

General Revenue Sharing

A form of federal monetary aid that is given to states and municipalities with minimal restrictions on how it can be spent.

Means Testing

A procedure to determine eligibility for certain forms of financial aid or social services based on the income and assets of an applicant.

Indexing

The practice of adjusting financial figures or static amounts by a designated benchmark or index to reflect changes in economic indicators.