Investing in mutual funds is different from depositing money in a depository institution in that it represents partial ownership, whereas deposits represent a form of credit.

Question

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Investing in mutual funds means purchasing shares in a portfolio of stocks, bonds, or other assets, which represents partial ownership. Depositing money in a depository institution means lending money to the institution, which represents a form of credit.

Investing in Mutual Funds Is Different from Depositing Money in a Depository