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    Question

    Which of the following statements about mutual funds is/are accurate?

    1. Open-ended mutual funds allow investors to buy and sell units at any time based on the current NAV.

    2. Closed ended mutual funds only allow transactions during specific intervals and are listed on stock exchanges.

    3. Interval funds are a type of mutual fund that allows purchases and redemptions at predetermined intervals.

    4. Exchange Traded Funds (ETFs) are a type of open-ended mutual fund that trades on stock exchanges like individual stocks.

    A 1 and 3 only Correct Answer Incorrect Answer
    B 1, 2, and 4 only Correct Answer Incorrect Answer
    C 2 and 4 only Correct Answer Incorrect Answer
    D 1, 3, and 4 only Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Closed ended mutual funds are listed on stock exchanges but do not allow transactions during specific intervals; they have a fixed maturity.

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