The Net Asset Value of a Mutual Fund Is

question 53

Multiple Choice

The net asset value of a mutual fund is

• A) determined by subtracting the fund's liabilities from its assets and dividing by the number of shares outstanding.
• B) determined by calculating the net price of the assets owned by the fund.
• C) calculated every 15 minutes and used for transactions occurring during the next 15-minute interval.
• D) calculated as the difference between the fund's assets and its liabilities.

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Definitions:

Japanese Yen

The official currency of Japan, known for being one of the most traded currencies in the world.

Indian Depositors

Individuals or entities in India who place their money in financial institutions for saving or investment purposes, contributing to the financial system's liquidity.

Depreciate

To decrease in value over time, often used in reference to tangible assets like machinery or vehicles due to wear and tear or obsolescence.

Exchange Rate

The rate at which one currency can be exchanged for another, affecting international trade and investments.