May 08, 2023
Mutual Funds MCQ (Multiple Choice Question) refers to a format of questions often used in assessments, quizzes or exams to test knowledge and understanding of mutual funds.
In this format, a question is asked followed by multiple answer options, only one of which is the correct or most appropriate answer. Participants must choose the correct answer from the given options.
Here is an example of Mutual Funds MCQ:
Question: What is the main purpose of a mutual fund?
a) providing regular income to investors
b) Guarantee a fixed income
c) combine money from several investors and invest in a diversified portfolio
d) Speculate on individual stocks for high returns
Correct Answer: c) raise money from multiple investors and invest in a diversified portfolio
In this example, choice c) is the correct answer because it accurately describes the main purpose of the mutual fund. Mutual funds pool funds from multiple investors and use the pooled funds to invest in a diversified portfolio of securities, such as stocks, bonds, or other assets, with the goal of achieving capital appreciation or income for investors.
When faced with mutual fund MCQs or other multiple choice questions, it is important to read the question and all the answer choices carefully before choosing the most appropriate answer.