Multiple choice

Constraints imposed by most funds on check writing are:

  1. account balance should not fall below the minimum capital required

  2. checks issued must be for at least the minimum amount specified

  3. number of checks per month must not exceed a specified number

  4. both a and b above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mutual funds impose two main check writing constraints: the account balance must not fall below the minimum capital required to maintain the account, and checks issued must be for at least the minimum amount specified by the fund. These requirements ensure operational efficiency and maintain account viability.

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