Question

Very often we read in newspapers/magazines about 'Sovereign Wealth Funds'. Which of the following is/are the correct description of the same?
A. These are the funds or the reserves of a government or central bank of a country which are invested further to earn profitable returns.
B. These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as black money for several years.
C. The funds which are created to be used as relief funds or bailout packages.

• A. Both (B) and (C) only
• B. Only (B)
• C. Only (C)
• D. Only (A)

Answer 1

The correct option is D Only (A)

Only statement A is correct. Sovereign wealth Funds is a state government owned investment fund. Money is invested in bonds, real estate, precious metals, stocks etc. Money is invested to earn profit they are not created for the sole purpose of welfare.