Question

Mutual funds _____. a. are investment companies that use funds provided by savers to buy various types of financial assets, including stocks and bonds, in the financial markets b. cater to savers, especially individuals who have relatively small savings or need long-term loans to purchase houses c. are groups of investment banking firms formed to spread the risk associated with the purchase and distribution of a new issue of securities d. are depository institutions that are owned by its depositors, who are often members of a common organization or association e. are organizations that distribute new issues of securities for corporations

Answer 1

Answer:

a)

Explanation:

Mutual funds are investment companies called AMC( asset management companies ) that gather funds from public by issuing units. These funds are then invested in financial securities and financial instruments likes bonds and shares. Mutual funds  are managed by financial experts and are less risky for common public than direct investment in stock market.