ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consolidate
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open-ended goal
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emergency fund
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goal chart
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Detailed explanation-1: -The primary purpose of a retirement savings fund is to create a steady source of revenue for an investor when he or she does not have a source of income. It can be considered as a form of deferred pay, providing financial security and enough capital to pay for the necessities of individuals.
Detailed explanation-2: -What Is an Open-End Fund? An open-end fund is a diversified portfolio of pooled investor money that can issue an unlimited number of shares. The fund sponsor sells shares directly to investors and redeems them as well. These shares are priced daily based on their current net asset value (NAV).
Detailed explanation-3: -Answer» B. It has units available for sale and repurchase at all times.
Detailed explanation-4: -US mutual funds, UK unit trusts and OEICs, European SICAVs, and hedge funds are all examples of open-ended funds. The price at which shares in an open-ended fund are issued or can be redeemed will vary in proportion to the net asset value of the fund and so directly reflects its performance.