Asked by Hadeel Damra on Jun 03, 2024
Verified
What type of financial institution raises money from investors by selling shares?
A) Credit union
B) Property and liability insurance company
C) Mutual fund
D) Pension fund
Mutual Fund
Financial intermediary that pools funds from investors by selling shares of itself and uses the funds to purchase securities.
Financial Institution
An organization that provides financial services to its clients or members, such as banks, credit unions, and insurance companies.
- Understand the architecture and objectives of diverse financial institutions.
- Acquaint yourself with a range of financial instruments and transactions.
Verified Answer
AK
Ambika KandelJun 05, 2024
Final Answer :
C
Explanation :
Mutual funds raise money by selling shares to investors and then pooling that money to purchase a diversified portfolio of stocks, bonds, or other securities.
Learning Objectives
- Understand the architecture and objectives of diverse financial institutions.
- Acquaint yourself with a range of financial instruments and transactions.