Describe the Advantages and Disadvantages of the Open-Ended and Closed-Ended

question 61

Essay

Describe the advantages and disadvantages of the open-ended and closed-ended formats.

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Definitions:

Reserve Requirement

A regulation that sets the minimum amount of reserves a bank must hold against customer deposits, intended to ensure bank liquidity.

Primary Market

The financial market where new securities, such as stocks and bonds, are initially issued and sold to investors.

Secondary Market

A financial market where previously issued securities and financial instruments such as stocks, bonds, options, and futures are bought and sold.

National Stock Exchange

A major securities exchange where stocks and other financial securities are bought and sold.