Which of the following services is not performed by a closed-end mutual fund?

Question

Quizplus · Accepted Answer

Closed-end mutual funds do not perform maturity transformation, which is the process of borrowing money in the short-term to invest in longer-term securities. This is a service that is performed by open-end mutual funds. Closed-end funds are typically structured with a fixed number of shares that are bought and sold on a stock exchange, whereas open-end funds issue new shares to meet demand and redeem shares when investors want to sell. The other services listed (transaction, risk diversification, sharing the costs of investment management) are all performed by both open-end and closed-end mutual funds.

Which of the Following Services Is Not Performed by a Closed-End