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QuizMultiple Choice

Saving and Investing

Question 1 • EA Academy Civics 9

Why might a beginning investor choose to invest in a mutual fund rather than play the stock market?

Answer
A
Mutual funds have total liquidity, while stocks do not.
B
A money manager will take charge of investing people’s money in a mutual fund.
C
Mutual funds do not have minimum costs for entry, while the stock market does.
D
A mutual fund makes it easier to invest money with companies the investor agrees with.

Explanation

A mutual fund pools money from many investors, and a professional money manager chooses and manages the fund’s investments. That can make investing easier for a beginner who may not know how to select individual stocks. Mutual funds and stocks can both be bought and sold, so total liquidity is not the key difference.

AI-written and checked against the verified answer.

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