Vidyalelo
Management · Q192

International Finance and Treasury

Graduate and Post Graduate · Management · question 192

Q192

Companies that collects funds from companies and individuals and invest in portfolios of assets are classified as

A.
activity funds
B.
mutual funds
Answer
C.
penalty funds
D.
financing funds

Answer: Option B

Solution

Answer: Option B
Solution:
Companies that collects funds from companies and individuals and invest in portfolios of assets are classified as mutual funds. A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets.