Which of the Following Statements Is True

question 8

Multiple Choice

Which of the following statements is true?

• A)Real estate funds offered by insurance companies as an alternative to conventional mutual funds.
• B)Bond funds seek to achieve a high level of income and liquidity.
• C)Mortgage funds have a higher risk then bond funds.
• D)Ethical funds are typically guided by moral criteria.
• E)Segregated funds are often considered a subset of specialty funds.

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Definitions:

Perpetuity

An annuity in which the periodic payments begin on a fixed date and continue indefinitely.

Long-Term Bonds

Debt securities with a maturity of more than 10 years, offering periodic interest payments.

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount loaned, payable to the lender at a specified rate over a given period.

Borrowing Directly

The process where individuals or entities obtain funding directly from lenders without intermediaries, typically through issuing bonds or obtaining loans.