A mutual fund pools money from investors to invest in: MCQ with Answer and Explanation

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A mutual fund pools money from investors to invest in:

A. only government bonds

B. a diversified portfolio of securities

C. only fixed deposits

D. only real estate

Answer: Option B

Solution (By JKSSB Mock Tests)

A mutual fund invests pooled investor funds in a diversified portfolio of securities.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Contingency Fund of India' is held by:

A. President

B. Prime Minister

C. Finance Minister

D. RBI

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Correct Answer: Option A

Explanation:
The Contingency Fund of India is placed at the disposal of the President.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'worker population ratio' is defined as:

A. unemployed divided by labour force

B. workers divided by population in relevant age group

C. labour force divided by population

D. workers divided by total population

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Correct Answer: Option B

Explanation:
Worker population ratio is workers as a percentage of population in the relevant age group.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Original Sin' in the literature on emerging-market debt refers to:

A. Only domestic-currency debt problems

B. The historical difficulty of many countries in borrowing internationally in their own currency

C. The first occurrence of a debt default

D. The sin of high public spending

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Correct Answer: Option B

Explanation:
Original sin denotes the inability of most emerging-market and developing countries to borrow abroad in their own currencies, forcing them to issue foreign-currency debt and creating currency mismatches.

This question belongs to: Economy GK Economy Set 1

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