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:

Terms of Sale

The conditions under which a seller is willing to sell a product or service, including price, payment method, and delivery time.

Prompt Payment Discount

A reduction in the amount due on a bill offered by a seller to encourage early payment by the buyer.

Operating Cycle

The total time it takes for a company to purchase inventory, sell the products, and collect the cash from the sales.

Cash Cycle

The period it takes for a company to convert its investments in inventory and other resources into cash flows from sales.