A(n)____ is an investment company that accepts money from savers and then use these funds to buy various types of financial assets.
A) savings and loans
B) insurance company
C) mutual savings bank
D) mutual fund
E) commercial bank

Question

Quizplus · Accepted Answer

A mutual fund is specifically designed to accept money from savers and then use those funds to purchase a diverse range of financial assets on behalf of its investors. Mutual funds enable individuals to invest in a professionally managed, diverse portfolio of financial assets, such as stocks, bonds, and real estate, that might be difficult or risky to invest in individually. Mutual funds are regulated by the Securities and Exchange Commission and are subject to strict investment guidelines to protect investors. The other answer options, such as savings and loans, insurance companies, mutual savings banks, or commercial banks, may accept deposits or invest funds in various financial assets, but they do not solely focus on mutual funds.

A(n)____ Is an Investment Company That Accepts Money from Savers