Which Statement Best Defines a Mutual Fund

question 170

Multiple Choice

Which statement best defines a mutual fund?

• A) It is a financial market where small firms agree to sell stocks and bonds to raise funds.
• B) It is a fund set aside by a local government to lend to small firms who want to invest in projects that are beneficial to the firm and community.
• C) It is an institution that sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit.
• D) It is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks and bonds.