Which of the Following Are Advantages of Saving Your Money

question 263

Multiple Choice

Which of the following are advantages of saving your money in a mutual fund?
I. You have professional fund management.
II. Mutual funds have always outperformed the S&P 500.
III. People with smaller amounts of money can diversify risk.

• A) I only
• B) I and II only
• C) I and III only
• D) I, II, and III

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Definitions:

Borrow

The act of receiving something from someone with the intention of returning it or its equivalent after a period of time.

Monthly Payment

A regularly scheduled payment that is due every month, commonly associated with loans or leases.

Years

Units of time that represent a period of approximately 365 or 366 days, based on the Earth's orbit of the sun.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.