A Mutual Fund That Invests in Common Stocks and Bonds

question 41

Multiple Choice

A mutual fund that invests in common stocks and bonds with the primary objective of earning tax-advantaged income is called a(n) ____________ fund.

• A)balanced
• B)capital growth
• C)dividend
• D)income
• E)money market

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Definitions:

Fed

Short for the Federal Reserve, it is the central banking system of the United States, responsible for monetary policy.

Vague Recommendations

Suggestions or advice provided without specific details, making them unclear or ambiguous in nature.

Goals

Targets or desired outcomes that an individual or organization aims to achieve through planned actions.

Monetary Policy Rule

Guidelines used by central banks to manage the economy by controlling the money supply and interest rates.