The prudent investor rule is an example of a regulation designed to ensure appropriate ________ by money managers.

Question

Quizplus · Accepted Answer

The prudent investor rule is a legal obligation that requires investment managers to always act in the best interests of their clients and to make investment decisions with caution, care, and good judgment. This is an example of fiduciary responsibility, which is the legal duty of investment managers to act in the best interests of their clients and to manage their assets with prudence and loyalty. Therefore, option A is the most appropriate choice. Option B (fiscal responsibility) and option C (monetary responsibility) may be relevant in a general sense, but they do not accurately describe the specific regulatory framework of the prudent investor rule. Option D (marketing procedures) is not relevant to this context.

The Prudent Investor Rule Is an Example of a Regulation