Reasons to Invest in Mutual Fund Include

question 63

Multiple Choice

Reasons to invest in mutual fund include
I. a wide range of services such automatic reinvestment and systematic withdrawal plans.
II. minimizing the time and effort spent choosing securities.
III. rates of return that consistently beat the market averages.
IV. participation in a variety of tax sheltered and tax deferred retirement programs.

• A) I and II only
• B) II, III and IV only
• C) I, II and IV only
• D) I, II, III and IV

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Definitions:

Average Total Cost

The per unit cost of production, calculated by dividing the total cost by the quantity of output produced.

Government-created Monopolies

Monopolies that are established or maintained by the government, often by granting exclusive rights or privileges to a single entity or organization.

Welfare Loss

A decrease in the overall economic well-being of a society, often resulting from inefficient resource allocation or market failures.

Public Ownership

Ownership of assets by the government or state, usually in sectors considered critical for public welfare.