Answer:
A mutual fund is an investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Risks:
The level of risk in a mutual fund depends on what it invests in. Stocks are generally riskier than bonds, so an equity fund tends to be riskier than a fixed income fund. Plus some specialty mutual funds focus on certain kinds of investments, such as emerging markets, to try to earn a higher return. These kinds of funds also tend to have a greater risk of a larger drop in value—yet the greater the risk, the greater the reward (or potential for higher returns).
Risks of Investing in Equity Mutual Funds The below are a few key risks involved with investing in equity funds: Volatility Risk: An equity fund invests primarily in the shares of companies listed on stock exchanges. Thus, the value of an equity fund is directly related to the performance of companies, in stocks of which it has invested.
<span>A bear market is distinguished by a declining stock market and decreasing investor confidence. A bear market is when security prices fall and the stock market starts to take a downward turn. The market tries to become self-sustaining so investors start to sell off their stocks and securities. </span>
Answer:
Annual consumer spending for the Wong family is = $58.000
Explanation:
Disposable income $70,000
Marginal propensity to consume 0.8
Autonomous consumption spending $10,000.
If the disposable income (the money needed to survive) is $10.000 then the $60.000 left to complete $70.000 will be consumed at a rate of 80% or 0.8 cents per each dollar received. Therefore,
Annual consumer spending = $10.000 + ($60.000*0.8)
Annual consumer spending = $10.000 + $48.000
Annual consumer spending = $58.000
To receive a loan from the imf, a country must agree to make economic reforms and conditions related to that loans.
<h3>What are the condition to receive a loan from IMF?</h3>
- To receive a loan from the IMF, a country must agree to make economic reforms.
- It has to follow the conditions associated with loans, debt relief and financial aid.
So we can conclude that To receive a loan from the IMF, a country must agree to make economic reforms and conditions related to that loans. #SPJ4
Learn more about IMF here: brainly.com/question/10346932#
