Which One of the Following Statements Is Correct Concerning the Mutual

question 86

Multiple Choice

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

• A) The lower the value of the MFCR, the stronger the market will be in the future.
• B) The MFCR is equal to the cash inflows into money market funds divided by the cash flows out of money market funds.
• C) A low MFCR indicates that fund managers might be forced to sell securities should investors wish to withdraw funds.
• D) A MFCR greater than 12% is considered a bearish signal.

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Definitions:

General Contract Law

The body of law that governs the formation, execution, and enforcement of agreements between parties.

Right of Inspection

The legal right to examine and review a company's books, records, and documents, typically granted to directors, officers, and shareholders.

Nonconforming Goods

Goods that fail to meet the specifications or standards outlined in a contract.

Course of Dealing

A term defining the established behavior and interaction patterns between contracting parties over time, building a context for interpreting their agreements.