A Mutual Fund That Requires Investors to Make Regular Purchases

question 145

Multiple Choice

A mutual fund that requires investors to make regular purchases over a specified period of time is called a:

• A)regular account.
• B)voluntary savings plan.
• C)contractual savings plan.
• D)minimum withdrawal plan.
• E)free contract plan.

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Definitions:

Retained Earnings

The cumulative amount of net income kept within a company after dividends are paid, reinvested in the business or used to pay off debt.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues, indicating the company’s profit.

Dividends

A portion of a company’s earnings distributed to its shareholders as a reward for their investment.