What Is One Advantage of Most Mutual Funds

question 38

Multiple Choice

What is one advantage of most mutual funds?

• A) They provide a stated rate of return.
• B) They offer tax-free earnings.
• C) They are insured against loss by the federal government, so they can never decline in value.
• D) They offer professional management of investments.

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Definitions:

Transaction

A swap or transaction involving goods, services, or money among two or more entities.

Risk of Loss

Refers to the legal and financial responsibility for damages or loss of goods while in transit or until the title has passed to the buyer.

Yard Sale

An informal sale typically held outdoors by private individuals to sell personal items, such as clothing, household goods, and toys, often at low prices.

Firm Offer

An offer in contract law that remains irrevocable for a certain period of time or until a specified date.