Open-End Mutual Funds Guarantee

question 7

Multiple Choice

Open-end mutual funds guarantee

• A)investors a minimum rate of return.
• B)investors a minimum Net Asset Value (NAV).
• C)to redeem investors' shares upon demand at the daily Net Asset Value (NAV).
• D)to earn the rate of return promised in the prospectus.

---

Definitions:

Lease Agreement

A contract in which one party agrees to rent property owned by another party for a specified period of time, in exchange for payment.

Offer Agreement

A detailed proposal by one party to enter into a contract, subject to acceptance by another party.

Adhesion Contract

A standardized contract prepared by one party, with little to no negotiation allowed, often in situations with unequal bargaining power.

Definite Offer

An offer that is clear, specific, and leaves no room for negotiation, often containing all the terms necessary for an enforceable agreement.