Which of these is a mutual fund? (1 point) Responses a fund that you share with your family to save in the bank a fund that you share with your family to save in the bank a fund used by the government to gather taxed money a fund used by the government to gather taxed money a fund that pools money from many investors to buy securities a fund that pools money from many investors to buy securities a fund used to pay shared bills and expenses
The correct answer is: a fund that pools money from many investors to buy securities.
The correct answer is: a fund that pools money from many investors to buy securities.
The option that is a mutual fund is:
- A fund that pools money from many investors to buy securities
To identify a mutual fund among the given options, we need to understand what a mutual fund is. A mutual fund is an investment vehicle that pools money from multiple investors and uses that money to purchase a diversified portfolio of securities such as stocks, bonds, or other assets. The goal of a mutual fund is to generate returns for its investors by investing in a variety of assets.
Among the given options, the only one that aligns with the definition of a mutual fund is "a fund that pools money from many investors to buy securities." This option describes the key characteristic of a mutual fund, which is the pooling of money from multiple investors to invest in securities. Therefore, this is the correct answer.