A Type of Investment That Combines and Invests the Funds

question 79

Multiple Choice

A type of investment that combines and invests the funds of many investors and manages it with a professional manager is called a(n)

• A)chequing account.
• B)securities exchange.
• C)guaranteed investment certificate.
• D)mutual fund.
• E)option fund.

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Definitions:

Administrative Burdens

The costs and obligations associated with compliance to rules, regulations, and administrative procedures for businesses and individuals.

Tax Evasion

Tax evasion is the illegal practice of not paying taxes by individuals, companies, or trusts, often by making false declarations or no declarations to tax authorities.

Tax Avoidance

The legal use of tax laws to reduce one's tax burden through various means and financial arrangements.

Tax System Equity

The fairness of a tax system, assessed by how the tax burden is distributed among different groups in society.