Liquidity Is Important to a Mutual Fund Primarily Because

question 59

Multiple Choice

Liquidity is important to a mutual fund primarily because:

• A) a fund that is less liquid will attract more investors.
• B) the fund's shareholders may want to redeem their shares at any time.
• C) new investors may invest in the fund at any time.
• D) the fund requires cash to pay its taxes.

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Definitions:

High Self-Esteem

A positive evaluation of oneself, reflecting a person's belief that they are worthy and competent.

Locus Of Control

Refers to an individual's belief about the extent to which their actions influence the outcomes of their life.

Conscientiousness

An attribute of being attentive, meticulous, and having the motivation to perform a task effectively.

Low Key

Describes a manner or approach that is deliberately understated or low in intensity, often to avoid attracting attention or to maintain a relaxed atmosphere.