Which of the Following Statements Is False

question 65

Multiple Choice

Which of the following statements is false?

• A)The purpose of investing in a closed-end or open-end mutual fund is to earn a financial return.
• B)Income dividends are the earnings that a fund pays to shareholders after it has deducted expenses from its dividend and interest income.
• C)Capital gain distributions are the payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio.
• D)It is possible to make money on a mutual fund by purchasing shares at a high price and then selling them at a low price at a later date.
• E)Real estate funds aim for long term growth

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Definitions:

Financial Distress

A condition where a company or individual cannot meet or has difficulty meeting financial obligations, leading to potential bankruptcy or restructuring.

Means-Tested Programs

are government assistance programs intended for individuals or families whose incomes and assets fall below specified thresholds.

Temporary Assistance

Short-term aid or support provided by governments or organizations to individuals facing financial hardship or disasters.

Needy Families

Refers to households with insufficient income or resources to maintain basic living standards, often qualifying them for governmental or charitable assistance programs.