A Mutual Fund

question 67

Multiple Choice

A mutual fund:

• A) is a way of investing in a single stock.
• B) pools the money of many investors-its shareholders-to invest in a variety of securities.
• C) is insured by the FDIC.
• D) is a form of an indirect real estate investment.
• E) is professionally managed so investors need not monitor fund results.

---

Definitions:

Opportunity Cost

The highest-valued alternative forgone as a result of making a decision to pursue a certain course of action.

Automobiles

Vehicles propelled by an internal combustion engine or electric motor, used for the transportation of people and goods on road surfaces.

Tractors

Agricultural machinery used for plowing, tilling, planting, and other tasks in farming, essential for modern agriculture.

Fair Trade

A trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers.