A Mutual Fund

question 67

Multiple Choice

A mutual fund:

• A) is a way of investing in a single stock.
• B) pools the money of many investors-its shareholders-to invest in a variety of securities.
• C) is insured by the FDIC.
• D) is a form of an indirect real estate investment.
• E) is professionally managed so investors need not monitor fund results.

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Definitions:

Means Test

A procedure used to determine eligibility for certain types of government assistance or legal aid, based on the financial situation of the applicant.

Chapter 7

A bankruptcy provision under U.S. law that involves the liquidation of a debtor's assets to pay off creditors.

Chapter 13

A portion of the U.S. Bankruptcy Code permitting individuals earning a steady income to devise a strategy for repaying their debts either in full or in part.

Liquidation Proceeding

A legal process in which a company's assets are sold off to pay creditors.