Which of the Following Is a Disadvantage Associated with Purchasing

question 35

Multiple Choice

Which of the following is a disadvantage associated with purchasing a mutual fund?

• A) Difficulty of buying and selling shares
• B) Aggressive or unethical sales personnel
• C) Only one withdrawal option
• D) No distribution of income and capital gains
• E) All of these are disadvantages associated with purchasing shares in a mutual fund.

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Definitions:

Domestic Investment

The total capital expenditures for the acquisition, maintenance, or improvement of physical assets within a country's borders.

Net Capital Outflow

The difference between the domestic country's sale of assets to foreigners and the domestic purchases of foreign assets over a given period, usually indicating how much a country is investing abroad compared to foreign investments in the country.

Government Budget Deficit

A situation where a government spends more money than it receives in revenue over a particular period, often leading to the accumulation of debt.

Real Exchange Rate

The rate at which the goods and services of one country can be exchanged for the goods and services of another, adjusted for inflation.