Which of the Following Statements Is Not Characteristic of Mutual

question 32

Multiple Choice

Which of the following statements is not characteristic of mutual funds?

• A) They are financial institutions.
• B) They raise money by selling shares to investors.
• C) They pool the savings of many investors.
• D) They offer professional management.

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Definitions:

Johnson Amendment

A U.S. law that prohibits tax-exempt organizations from endorsing or opposing political candidates, to maintain separation of church and state.

President Trump

The 45th President of the United States, Donald J. Trump, who served from January 20, 2017, to January 20, 2021.

501(c)(3)

A section of the U.S. Internal Revenue Code that provides a tax-exempt status to nonprofit organizations that are charitable, religious, educational, scientific, or literary in nature.

501(c)(4) Organizations

Nonprofit groups recognized under the U.S. tax code as "social welfare" organizations, permitted to engage in advocacy and lobbying efforts to a certain extent.