Which Advantage(s)do Mutual Funds Claim to Provide

question 107

Multiple Choice

Which advantage(s) do mutual funds claim to provide?

• A)diversification and access to the skills of professional money managers
• B)diversification but not access to the skills of professional money managers
• C)access to the skills of professional money managers but not diversification
• D)neither diversification nor access to the skills of professional money managers.

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Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee's name on it.

Rubber-stamped Signature

A term used to describe a signature that has been mechanically or electronically duplicated, often used to expedite document processing.

Drawer

The party in a financial transaction who writes and signs a check or draft directing a bank to pay the check’s amount to someone else.

Negotiable Instrument

A negotiable instrument is a signed document promising to pay the bearer or assigned holder a specific sum of money, such as checks, promissory notes, and drafts.