Which of the Following Is Not a Withdrawal Option for a Mutual

question 93

Multiple Choice

Which of the following is not a withdrawal option for a mutual fund?

• A)The investor may withdraw a specified, dollar amount each investment period.
• B)The investor may liquidate or "sell off" a certain number of shares each investment period.
• C)The investor can withdraw a fixed percentage of asset growth.
• D)The investor can withdraw all income that results from interest, dividends, and capital gains earned by the mutual fund during an investment period.
• E)The investor must wait five years, and then can withdraw 10 percent of the asset growth each year until the fund is exhausted.

---

Definitions:

Original Investment

The initial amount of money put into an investment or project, serving as the baseline for measuring future earnings or losses.

Nominal Interest Rate

The interest rate before adjustments for inflation, as opposed to the real interest rate.

Periodic Interest Rate

The interest rate applied to a loan or investment for a specific period, usually shorter than a year.

Compound-Interest GIC

A Compound-Interest Guaranteed Investment Certificate is a type of investment where the interest earned is reinvested, allowing the initial investment to grow at an exponential rate over time due to the compound interest effect.