Mutual Fund Basics

A type of investment that pools money from many investors to buy stocks, bonds, or other securities (correct)

A government-issued financial instrument for retirement savings

A type of loan provided by a bank to individual investors

An insurance policy that guarantees a fixed return on investment

To offer guaranteed returns on investment

To provide a way for individual investors to diversify their investment portfolio (correct)

To provide short-term loans to businesses

To insure investors against market fluctuations

Through guaranteed returns provided by the government

Through a combination of dividends, interest, and capital gains from the securities in the fund's portfolio (correct)

Through direct loans to individuals and businesses

Through fixed interest payments from the mutual fund management company