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:

T Account

A skeleton version of a standard account, used for demonstration purposes.

Debit Side

The left side of an account in double-entry bookkeeping, used to record increases in assets and expenses or decreases in liabilities and equity.

Credit Side

The right side of an accounting ledger where credits are recorded, typically increasing liabilities and equity or decreasing assets.

Expenses

The money spent or costs incurred in an entity's efforts to generate revenue, representing the cost of doing business.