As a money management fee,mutual funds usually charge their customers
A)between 0.25 and 2.0 percent of assets each year.
B)between 1.5 and 3.0 percent of assets each year.
C)nothing,because they receive commissions from the firms whose stock they buy.
D)a flat fee of about $50.

Question

Quizplus · Accepted Answer

Mutual funds usually charge their customers a management fee based on a percentage of assets under management. This fee typically ranges from 0.25% to 2.0% per year. Option B is not the best choice as it gives a wider range than what is usually charged. Option C is incorrect as mutual funds do not receive commissions from firms whose stock they buy, rather they charge a fee to their customers. Option D is incorrect as mutual funds rarely charge a flat fee, especially not as low as $50.

As a Money Management Fee,mutual Funds Usually Charge Their Customers