Vidyalelo
Commerce · Q931

Financial Management

Graduate and Post Graduate · Commerce · question 931

Q931

Corporations that buy financial instruments with money accepted from savers are classified as

A.
debit funds
B.
credit funds
C.
mutual funds
Answer
D.
insurance funds

Answer: Option C

Solution

Answer: Option C
Solution:
Corporations that buy financial instruments with money accepted from savers 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.