If a Mutual Fund Holds a Substantial Amount of Treasury

question 50

Multiple Choice

If a mutual fund holds a substantial amount of Treasury bills, it is probably a:

• A) tax-exempt fund.
• B) conservative bond fund.
• C) bond income fund.
• D) money market mutual fund.

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Definitions:

Contribution Format

A type of income statement where costs are separated into variable and fixed categories, highlighting the contribution margin.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed costs in a company's cost structure.

Sales Increase

The rise in the volume or amount of sales over a specific period, reflecting business growth.

Net Operating Income

The profit generated from a company's core business operations after deducting all operating expenses except for interest and taxes.