An Open-End Investment Company That Can Issue an Unlimited Number

question 46

Multiple Choice

An open-end investment company that can issue an unlimited number of its shares to investors and use the pooled proceeds to purchase corporate and government securities is called a(n)

• A) mutual fund.
• B) pension fund.
• C) insurance company.
• D) brokerage firm.

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Definitions:

Government Regulation

Laws and rules set by the government to control the way businesses and industries operate, with the aim of protecting public interest.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from trading a good or service.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service versus what they actually receive.

Consumer Surplus

It is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.