Which of the Following Are Three Key Advantages of Mutual

question 12

Multiple Choice

Which of the following are three key advantages of mutual funds?

• A)diversification, taxes, high initial investments
• B)low initial investments, professional management, diversification
• C)liquidity, high initial investments, diversification
• D)professional management, high initial investments, taxes
• E)costs, diversification, liquidity

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Definitions:

Tax Laws

Regulations and legal standards governing the collection of taxes by the government from individuals and organizations.

Preferential Treatment

The act of giving advantageous conditions or benefits to certain groups or individuals over others, often based on criteria outside of merit.

Retirement Saving

Financial savings accumulated over an individual’s working life to provide income in retirement.

Balanced-Budget Policies

Financial or fiscal strategies employed by governments to ensure spending does not exceed income.