What Is a Mutual Fund

question 25

Multiple Choice

What is a mutual fund?

• A) A mutual fund is a pool of funds established by corporate financial managers to provide for short-term business loans.
• B) A mutual fund is a loan to the federal government made by a business firm.
• C) Investors pool resources from individuals and business firms to purchase a portfolio of stocks,bonds,and short-term securities.
• D) A mutual fund consists of money raised by selling a share of ownership in a business firm.
• E) A mutual fund is a product sold by mutual life companies.

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Definitions:

Zone of Saturation

The area beneath the Earth's surface where all the pores and fractures of the rock are filled with water.

Permeability

A measure of how easily fluids can flow through a porous material, such as rocks or soil, due to the presence of interconnected void spaces.

Loosely Cemented Sand

Sand particles that are weakly bound together by a mineral matrix, which can easily erode or change shape under physical stress.

Volcanic Rock

Rock formed from magma erupted from a volcano or solidified on the surface of the earth.