An Example of a Lifecycle Fund Is a Fund That

question 64

Multiple Choice

An example of a lifecycle fund is a fund that

• A) Assists investors with planning for retirement by a specific date.
• B) Initially invests in conservative securities, then changes to invest in more risk-oriented securities as time goes by.
• C) Invests in shares of other mutual funds in order to increase diversification and asset allocation.
• D) Has principal protection as its main objective.
• E) None of these is an example of a lifecycle fund.

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Definitions:

Commodity Money

Money that has intrinsic value and can be used for purposes other than as a medium of exchange, such as gold or silver.

Coins

Pieces of metal, authorized by a government as money, stamped with designs and denominations.

Specialized Labor

Workers with specific skills and training focused on a particular job or industry, enhancing efficiency and productivity.

Monetary Exchange

The process of trading different forms of money, currencies, or other financial instruments, typically reflecting the value of goods, services, or financial assets in financial transactions.