Loans to companies, cities, or states that usually pay a specified interest rate are called:
A. stocks
B. bonds
C. mutual funds
D. money markets
it is B bonds
Which of the following is NOT an advantage of buying mutual funds?
A. You can start with a small amount
B. You reduce your risk
C. You always make money
D. You have a variety of companies
it is D you have a variety of companies
I agree with your first answer, but not your second.
so it would be C. for number 2
Yes, C is correct. Mutual funds are never guaranteed to make money.
To find the answer to the first question, you can rely on your knowledge of financial terms. Loans to companies, cities, or states that usually pay a specified interest rate are known as bonds.
To find the answer to the second question, you can analyze the given options and eliminate the ones that do provide advantages of buying mutual funds. One of the options, "You have a variety of companies," does not provide an advantage of buying mutual funds, as having a variety of companies is actually one of the advantages. Therefore, the correct answer is D).
I hope this explains how to arrive at the answers to the questions.