Mutual Funds _____

question 40

Multiple Choice

Mutual funds _____. 

• A)are depository institutions that are owned by its depositors, who are often members of a common organization or association
• B)are investment companies that use funds provided by savers to buy various types of financial assets, including stocks and bonds, in the financial markets
• C)cater to savers, especially individuals who have relatively small savings or need long-term loans to purchase houses
• D)are organizations that distribute new issues of securities for corporations
• E)are groups of investment banking firms formed to spread the risk associated with the purchase and distribution of a new issue of securities

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Definitions:

Liability Insurance

A type of insurance that provides protection against claims resulting from injuries and damage to people or property.

Economical Premium

A cost-effective payment or fee, usually for insurance, that provides value or savings over time.

Coverage

The extent to which insurance policies or financial protection plans will compensate for losses or damages incurred.

Financial-Planning Consultant

A professional who advises clients on managing their finances and achieving financial goals.