Which Type of Mutual Fund Invests Primarily in High-Yield, High-Risk

question 32

Multiple Choice

Which type of mutual fund invests primarily in high-yield, high-risk corporate bonds?

• A) Junk bond fund
• B) Intermediate corporate bond fund
• C) Municipal bond fund
• D) Short-term government bond fund
• E) World bond fund

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Definitions:

Indirect Method

A method often used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, also known as net earnings or net profit.

Noncash Expense

Expenses that do not directly result in a physical outflow of cash but are recorded in the accounting records, such as depreciation.

Depreciation

The methodical distribution of the expense of a physical asset across its lifespan.