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:

Automatic Processing

The unconscious encoding of incidental or well-learned information without effort.

Effortful Processing

The active and conscious effort to encode or store information in memory.

Iconic Memory

A type of visual sensory memory that holds an exact copy of what is seen for a very brief period of time, usually under a second.

Serial Position Effect

A phenomenon in memory research indicating that people tend to remember the first and last items in a series better than the middle items.