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Commerce · Q988

Financial Management

Graduate and Post Graduate · Commerce · question 988

Q988

Collection of money from investors and spending money in other investment activities is classified as

A.
future funds
B.
hedge funds
Answer
C.
retirement funds
D.
pension funds

Answer: Option B

Solution

Answer: Option B
Solution:
Collection of money from investors and spending money in other investment activities is classified as hedge funds. A hedge fund is basically a fancy name for an investment partnership. It's the marriage of a professional fund manager, who can often be known as the general partner, and the investors, sometimes known as the limited partners, who pool their money together into the fund.