Mutual Funds Were Created ________

question 46

Multiple Choice

Mutual funds were created ________.

• A) in order to provide insurance to all households
• B) in order to limit interest rates that are paid on deposits
• C) to pool the savings of small investors and use the proceeds to invest on their behalf
• D) Only A and B of the above

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Definitions:

Pollution Abatement

The reduction or elimination of pollution to protect the environment, typically involving strategies and technologies to control emissions and contaminants.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Marginal Benefit

The additional satisfaction or utility derived by consuming or producing one more unit of a good or service.

Public Good

An item or service made available at no cost to everyone in society, delivered by public institutions, private organizations, or individuals without aiming for financial gain.