Which One of the Following Statements Is Correct Concerning the Mutual

question 2

Multiple Choice

Which one of the following statements is correct concerning the mutual fund cash ratio (MFCR) ?

• A) The lower the value of the MFCR, the stronger the market will be in the future.
• B) The MFCR is equal to the cash inflows into money market funds divided by the cash flows out of money market funds.
• C) A low MFCR indicates that fund managers might be forced to sell securities should investors wish to withdraw funds.
• D) A MFCR value greater than 12 is considered a bearish signal.

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Scientific Method

A systematic and empirical approach to research in which a problem is identified, relevant data are gathered, a hypothesis is formulated, and then the hypothesis is empirically tested.

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