Which One of the Following Statements Is Correct Concerning the Mutual

Multiple Choice

Which one of the following statements is correct concerning the mutual fund cash ratio (MFCR) ?

A) When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks.
B) Low mutual fund cash is bullish because it means managers have been buying stocks.
C) High mutual fund cash indicates that fund managers might be forced to sell securities should investors wish to withdraw funds, a bearish signal.
D) A high MFCR is like high short interest in that it indicates pent up demand.