The figure given below shows the demand curves [D 1 and D 2 ] and the supply curve [S 1 ] of capital.Figure 17.1

-Mutual funds that attempt to mimic the performance of a broad market index, such as the Dow Jones Industrial Average, are known as:

Question

The figure given below shows the demand curves [D 1 and D 2 ] and the supply curve [S 1 ] of capital.Figure 17.1
 
-Mutual funds that attempt to mimic the performance of a broad market index, such as the Dow Jones Industrial Average, are known as:

Quizplus · Accepted Answer

Mutual funds that attempt to mimic the performance of a broad market index, such as the Dow Jones Industrial Average, are known as index funds. Socially responsible funds invest in companies that meet certain ethical or environmental criteria, equity funds invest in stocks, fixed-income funds invest in bonds, and money market funds invest in short-term, low-risk securities. Therefore, index funds are the best choice in this case.

The Figure Given Below Shows the Demand Curves [D1 and D2]

The Figure Given Below Shows the Demand Curves [D₁ and D₂]