Which One of the Following Statements Is Correct Concerning the Mutual

question 72

Multiple Choice

Which one of the following statements is correct concerning the mutual fund cash ratio (MFCR) ?

• A) When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks.
• B) Low mutual fund cash is bullish because it means managers have been buying stocks.
• C) Low mutual fund cash indicates that fund managers might be forced to sell securities should investors wish to withdraw funds, a bearish signal.
• D) A high MFCR is like high short interest in that it indicates pent up demand.

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Definitions:

Upwardly Mobile

Refers to individuals or groups that are moving to a higher socioeconomic status, often through education, employment, or increased income.

Imperialist Tendencies

The inclination towards extending a country's power and influence through colonization, use of military force, or other means.

Democratic Forms

Pertains to the various methods and systems through which democracy is implemented and practiced, encompassing aspects like voting systems, public participation, and representative governance.

Trade Barriers

Measures implemented by governments to restrict or regulate international trade, including tariffs, quotas, and embargoes.