A Mutual Fund's Net Asset Value (NAV)reflects

question 41

Multiple Choice

A mutual fund's net asset value (NAV) reflects

• A)the market value of all its holdings.
• B)the amount distributed to shareholders each year.
• C)its revenues minus its expenses.
• D)its per-share value in a bankruptcy liquidation.

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Definitions:

Market Oriented

An economic system or approach that prioritizes supply and demand as the primary forces in the market, promoting free competition among businesses.

Pure Capitalist Economy

An economic system characterized by private ownership of the means of production and the absence of government intervention in the market.

Price Mechanism

The process through which market prices adjust to balance supply and demand, allocating resources efficiently.

Government Central Planning

A system where the government makes all decisions on the production and distribution of goods and services.