Investors Use Mutual Funds for Which of the Following Reasons

question 50

Multiple Choice

Investors use mutual funds for which of the following reasons?
I. to accumulate wealth
II. to minimize risk
III. as a speculative vehicle
IV. as a storehouse of value

• A) I and II only
• B) II, III and IV only
• C) I, II and IV only
• D) I, II, III and IV

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Recognize the correct syntax for declaring and initializing arrays.

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Definitions:

Money Market Funds

Investment funds that invest in short-term debt securities with the aim of offering high liquidity with a low level of risk.

Institutional Funds

Investment pools that target large-scale investments, managed by professionals and accessible mainly to institutional investors.

Increased Disclosure

The practice of making more financial and operational information available to the public or regulatory bodies, aiming to improve transparency.

Redemptions

The process of returning an investment’s principal at maturity or withdrawing funds from an account, often seen in mutual funds or fixed-income securities.