Which One of These Investments Pools the Funds of Many

question 99

Multiple Choice

Which one of these investments pools the funds of many investors and hires a professional money manager to manage those funds?

• A) NOW account
• B) Securities exchange
• C) Certificate of deposit
• D) Mutual fund
• E) Stock option

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Definitions:

Variable Cost

Variable cost is the cost that changes in direct proportion to the volume of output or activity in production, services, or other cost-incurred activities.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a business.

Contribution Margin

The amount by which the unit selling price exceeds the unit variable cost.