Open-End Mutual Fund Shares Have Good Liquidity Because

question 93

Multiple Choice

Open-end mutual fund shares have good liquidity because

• A)they act very much like a bank account.
• B)the fund company will buy back the shares whenever requested.
• C)there are no redemption fees.
• D)you can always find another investor willing to purchase your shares.

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Definitions:

Parallel Processing

The capability of the brain to process different types of incoming stimuli at the same time.

Focus Attention

The mental process of concentrating on one aspect of the environment while ignoring others, a fundamental aspect of cognitive processing.

Information Processing

A cognitive approach that emphasizes the way people encode, store, process, and retrieve information.

Conscious Processing

The mental activities and cognitive processes that occur within awareness, allowing for intentional thought and decision-making.