Question

If a university's endowment fund value drops leading to falling earnings or income, the university

a) can maintain scholarships out of the endowment fund's principal

b) will raise tuition to offset its falling endowment income

c) it most likelt to drop tuition rates

d) may need to cut scholarships to students

Answer 1

Option "d" is correct that says, "may need to cut scholarships to students".

University Endowment Fund- This fund is made out of the money, donated by the donors to the university and colleges. Money of this fund is provided to the meritorious students who get the highest marks in the form of scholarship and also the needy students, sometimes this amount is used to hire the professors.

If fund value drops then university and college may need to cut the scholarships to the students.