Roberta Cartwright Puts Money Each Month into a Mutual Fund

question 60

Multiple Choice

Roberta Cartwright puts money each month into a mutual fund that has very few controls;in that,the managers can invest in whatever they want because this type of fund is not regulated by the SEC.Roberta has a(n) ________ fund.

• A)open-end
• B)closed-end
• C)hedge
• D)no-load
• E)back-end load

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Definitions:

Low-income Workers

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Moral Hazard

A situation in which one party in a transaction has the opportunity to assume additional risks that negatively affect the other party, often arising in insurance and finance.

Underconsume

When consumers buy less of a good or service than is economically efficient, often leading to potential welfare losses.

Private Health Insurance

Health insurance coverage provided by private entities as opposed to government programs, often through employment or individual purchase.