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© 2014 Pearson Canada Inc.#
Sovereign wealth funds can be a concern because they ____.
A) could cause market instability
B) raise national security issues
C) are secretive
D) All of the above
Answer: A
Diff: 1 Type: MC Page Ref: 284
Skill: Recall
Objective List: 12.5 Examine the key aspects of mutual funds
Mutual funds are regulated by ____.
A) individual provinces
B) the federal government
C) the Mutual Fund Dealers Association of Canada
D) All of the above
Answer: A
Diff: 1 Type: MC Page Ref: 284
Skill: Recall
Objective List: 12.5 Examine the key aspects of mutual funds
Money-market mutual funds invest in ____.
A) stocks
B) bonds
C) short-term debt
D) short and long-term debt
Answer: C
Diff: 1 Type: MC Page Ref: 285
Skill: Recall
Objective List: 12.5 Examine the key aspects of mutual funds
How do sovereign wealth funds raise national security issues?
Answer: Sovereign wealth funds raise national security issues, because they might use their
investments for political purposes. They might buy up strategically important industries or use
their clout to get political concessions. This is a particular concern, because the governments of
Russia, China and Arab countries control many of the largest of these funds.
Diff: 3 Type: SA Page Ref: 285
Skill: Applied
Objective List: 12.5 Examine the key aspects of mutual funds