It Is Claimed That Mutual Funds Have Two Advantages

question 151

Multiple Choice

It is claimed that mutual funds have two advantages.The first is that mutual funds allow people with small amounts of money to diversify.The second is that mutual funds provide the skills of professional money managers who buy stocks they believe will be the most profitable and thereby increase the return that mutual fund depositors earn on their savings.

• A)Economists strongly agree with both claims.
• B)Economists are skeptical of both claims.
• C)Economists are skeptical of the first claim,but strongly agree with the second.
• D)Economists strongly agree with the first claim,but are skeptical of the second.

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Definitions:

Lava Fountain

A jet of molten lava that is ejected into the air from a volcanic vent.

Pyroclastic Column

A dense cloud of hot ash, gas, and volcanic matter that rises above a volcano during an explosive eruption.

Lava Dome

A dome-shaped mountain or hill of at least partly solidified lava generally of felsic to intermediate composition.

Lava Flow

Magma that erupts onto the surface and flows downhill from the vent; also the solidified body of rock formed by this magma.