Answer:
B. Mutual funds are actively managed while index funds are passively managed.
Step-by-step explanation:
Mutual funds are defined as funds that are invested by a person who has limited funds in order to gain a market return on their shares. Mutual funds are actively managed investments. Mutual funds are invested within a short period of time. Examples of mutual funds includes bonds, shares, treasury bills e.t.c
For mutual funds, you don't need to have a large amount of knowledge to do it. Mutual funds are also called or known as open ended funds. They are sold publicly.
Exchange-traded funds are also known as index funds. They are passively managed investment funds that can be invested by a person for a long period of time. They are also referred to as closed ended funds that can be traded on the stock exchange market like normal stocks and shares.