Which of the Following Is Not a Way in Which

question 93

Multiple Choice

Which of the following is not a way in which mutual funds generate returns for their shareholders?

• A) They can pass on any earned income as dividend payments to shareholders.
• B) They distribute the capital gains resulting from the sale of securities within the fund.
• C) The mutual fund price appreciates.
• D) All of the above are ways in which a mutual fund generates returns to its shareholders.

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Definitions:

Multiplier

An economic factor that quantifies the additional economic activity generated from an initial injection of spending.

Equilibrium Real GDP

is the level of Gross Domestic Product where aggregate demand equals aggregate supply, resulting in a stable economy without inflationary or recessionary gaps.

Investment

The act of allocating resources, usually financial, with the expectation of generating an income or profit, such as purchasing stocks, bonds, or real estate.

Inflationary GDP Gap

A situation where actual gross domestic product exceeds the potential GDP, leading to upward pressure on prices and inflation.