Which One of the Following Statements Is Correct Concerning Mutual

question 45

Multiple Choice

Which one of the following statements is correct concerning mutual funds?

• A)Mutual funds generally pay no taxes.
• B)Mutual funds are risk-free.
• C)Profits on the sale of mutual fund shares are tax-free.
• D)All mutual funds are diversified.
• E)Investments in mutual funds are guaranteed from loss by a private agency of the federal government.

---

Definitions:

Revolutionary Cause

Represents a movement or series of actions aiming for radical change in society's structure, often involving overthrowing a government or societal norms.

Revolution

A significant change, often political, brought about by force or through social movements, resulting in a new societal structure.

American Colonists

The European settlers and their descendants who established colonies in what is now the United States, particularly before independence from Britain.

Treaty of Paris

The 1783 agreement that ended the American Revolutionary War, recognizing American independence and establishing borders for the new nation.