BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A collection of investment tools such as stocks, shares, mutual funds, bonds, cash and so on depending on the investor’s income, budget and convenient time frame. The art of selecting the right investment policy for the individuals in terms of minimum risk and maximum return is called as
A
Portfolio management
B
Credit creation
C
Amortized management
D
Zero account
Explanation: 

Detailed explanation-1: -A portfolio refers to a collection of investment tools such as stocks, shares, mutual funds, bonds, cash and so on depending on the investor’s income, budget and convenient time frame. Following are the two types of Portfolio: Market Portfolio.

Detailed explanation-2: -A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio.

Detailed explanation-3: -A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds.

Detailed explanation-4: -Investment funds (like mutual funds) are a collection of investments from one or more asset classes. Funds will focus on specific investments, such as government bonds, stocks from large companies, stocks from certain countries, or a mix of stocks and bonds.

Detailed explanation-5: -Mutual funds are investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own. This is often referred to as a portfolio.

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