When Comparing Banks and Mutual Funds, Mutual Funds Have

Multiple Choice

When comparing banks and mutual funds, mutual funds have:

A) more liquidity risk than banks because all shareholders share the loss of value on a pro rata basis
B) less liquidity risk than banks because all shareholders share the loss of value on a pro rata basis
C) more liquidity risk than banks because all shareholders have the ability to withdraw their money on a 'first come first served' basis
D) the same liquidity risk as banks because both shareholders and depositors share the fall in the loss of value on a pro rata basis