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1 FINANCE MCQS

Companies that collect money from individuals and businesses and invest it in a portfolio of assets are called __________?

  • Activity funds
  • Mutual funds
  • Penalty funds
  • Financing funds
Correct Answer: B. Mutual funds

Detailed Explanation

Mutual funds are investment companies that pool money from individual and institutional investors and invest it in a diversified portfolio of assets such as stocks, bonds, or money market instruments. This allows investors to benefit from diversification and professional management.

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