Which One of the Following Is Not a Withdrawal Option

question 44

Multiple Choice

Which one of the following is not a withdrawal option for a mutual fund?

• A)Withdrawing a specified, fixed dollar amount each investment period
• B)Liquidating, or "selling off" a certain number of shares each investment period
• C)Withdrawing a fixed percentage of asset growth
• D)Withdrawing all asset growth earned during an investment period
• E)Withdrawing a stated amount and treating it as a short-term loan

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Definitions:

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, accounting for all costs.

Interest

The cost of using borrowed money, paid by the borrower to the lender, typically expressed as a percentage of the principal sum per year.

Stated Rate

The annual interest rate of a bond or loan without adjusting for compounding or other factors, often differing from the effective rate or annual percentage rate (APR).

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, which represents the actual yearly cost over the term of a loan.