Which of the Following Is a Secondary Advantage of Mutual

question 167

Multiple Choice

Which of the following is a secondary advantage of mutual funds?

• A)An investor can avoid investment charges and fees.
• B)They give ordinary people access to loanable funds for investing.
• C)They usually outperform stock market indexes.
• D)They give ordinary people access to the skills of professional money managers.

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Definitions:

Futures Contracts

Financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price.

Electronic Networks

Systems or platforms that facilitate the trading of financial instruments, such as stocks and currencies, digitally and without a physical trading floor.

Trading Pits

Physical locations on the floor of some exchanges where traders use open outcry and hand signals to buy and sell commodities or financial instruments.

Futures Contracts

Standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.