An Example of a Lifecycle Fund Is a Fund That

question 64

Multiple Choice

An example of a lifecycle fund is a fund that

• A) Assists investors with planning for retirement by a specific date.
• B) Initially invests in conservative securities, then changes to invest in more risk-oriented securities as time goes by.
• C) Invests in shares of other mutual funds in order to increase diversification and asset allocation.
• D) Has principal protection as its main objective.
• E) None of these is an example of a lifecycle fund.

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Definitions:

Current Account Deficit

A measure that shows when a country's total imports of goods, services, and transfers are greater than its total exports. It indicates the country is spending more on foreign trade than it is earning.

Budget Deficit

When federal tax receipts are less than federal government spending.

Trade Deficit

A situation where the value of a country's imports exceeds the value of its exports.

Gold Standard

A monetary system in which the value of a country's currency is directly linked to a certain amount of gold, ensuring that the currency has a stable value.