Question

Which one of the following arguments is correct?Multiple ChoiceMutual funds provide small investors with low-cost diversification.An individual can save and invest in a corporation only by purchasing additional shares.NEW YORK STOCK EXCHANGE (NYSE) is NOT considered as financial markets.Investment banks raise money from depositors and make loans to individuals and businesses.

Answer 1

The answer is "Option A".

Step-by-step explanation:

The numbering of the choices is missing in the question which is defined in the attached file. Please find it.

Mutual funds are often a pool of assets, that allows small investors can expose themselves to a large variety of inventory levels and contribute towards diversifying at the cheapest prices, and the wrong choice can be explained as follows:

• In choice b, investment decisions may take place in companies, not only through the purchase of stock, through investment in preferred shares, equity, and bonds, that's why it is wrong.
• In choice c, the stock market is the market of the securities exchange, and the bursaries are a financial market, that's why it is wrong.
• In choice d, the financial institutions help firms collect their capital, and business banks collect their cash from customers to lend it, that's why it is wrong.