17-69 When Comparing Banks and Mutual Funds

question 9

Multiple Choice

17-69 When comparing banks and mutual funds,

• A)mutual funds have more liquidity risk than banks because all shareholders share the loss of value on a pro rata basis.
• B)mutual funds have less liquidity risk than banks because all shareholders share the loss of value on a pro rata basis.
• C)mutual funds have more liquidity risk than banks because all shareholders have the ability to withdraw their money on a first-come first basis.
• D)mutual funds have less liquidity risk than banks because all shareholders have the ability to withdraw their money on a first-come first basis.
• E)mutual funds have the same liquidity risk as banks because both shareholders and depositors share the fall in the loss of value on a pro rata basis.

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Definitions:

Non-violent Offenses

Crimes that do not involve the use of any force or injury to the body of another person, such as theft or fraud.

Imprisonment

The act of confining someone in a prison or as if in a prison as a legal punishment.

Embezzlement

A wrongful conversion of another’s funds or property by one who is lawfully in possession of those funds or that property.

Forgery

A criminal falsification by imitating, impersonating, or altering a real document with the intent to deceive or defraud.