No-Load Funds Are Mutual Funds That ________

question 59

Multiple Choice

No-load funds are mutual funds that ________.

• A) do not charge sales commission
• B) offer high rates of interest
• C) offer low rates of interest
• D) do not invest in equity shares
• E) offer huge tax benefits to investors

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Definitions:

Optimal Allocation

The most efficient distribution of resources and services, maximizing the benefit from their use.

External Costs

Costs not reflected in the market price of goods or services, borne by a third party or society at large.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can significantly influence prices or market conditions.

Government Intervention

The involvement of government in the market, aimed at correcting market failures, redistributing income, or achieving societal goals.