New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following statements about Asset Management

    Companies (AMCs) is true?
    A AMCs are financial institutions that specialize in providing loans to individuals and businesses. Correct Answer Incorrect Answer
    B AMCs are government agencies responsible for managing public infrastructure assets. Correct Answer Incorrect Answer
    C AMCs are companies that manage and invest pooled funds from investors into various financial assets. Correct Answer Incorrect Answer
    D AMCs are organizations that regulate the buying and selling of stocks and securities in the stock market. Correct Answer Incorrect Answer
    E AMCs are insurance companies that offer coverage for physical assets such as buildings and vehicles. Correct Answer Incorrect Answer

    Solution

    Asset Management Companies (AMCs) are financial institutions that manage and invest funds collected from individual and institutional investors. These funds are pooled together and invested in various financial instruments such as stocks, bonds, mutual funds, and other securities. AMCs are responsible for making investment decisions, portfolio management, and ensuring the growth and preservation of the investors' capital. They provide professional asset management services and aim to generate returns for investors based on their investment objectives and risk tolerance.

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