A Switching Privileges on Mutual Funds Allows Shareholders to Exchange

question 170

Multiple Choice

A switching privileges on mutual funds allows shareholders to exchange shares of one mutual fund for shares of

• A)common stock.
• B)any mutual fund sold in the United States.
• C)any mutual fund in the same family of funds.
• D)bonds.

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Definitions:

Average Cost Formulas

A method used in accounting to calculate the cost of goods sold and ending inventory by averaging the cost of all items available for sale during the period.

Unit Cost

The expense incurred to produce, store, and sell one unit of a product or service.

Unit Cost

The cost to produce, acquire, or purchase one unit of a product or service, calculated by dividing total costs by the number of units produced or acquired.

Inventory

The total amount of goods or materials in stock, which a business holds to ultimately sell for a profit.