Which of the Following Observations Is True of Open-End Mutual

question 78

Multiple Choice

Which of the following observations is true of open-end mutual funds?

• A)They have a fixed number of shares outstanding.
• B)The value of shares changes with the demand for the fund by investors.
• C)Investors buy and sell shares on a stock exchange.
• D)The demand for shares determines the number outstanding.
• E)Shares may trade at a premium or discount.

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Definitions:

Discretionary Monetary Policy

A policy that involves the deliberate manipulation of interest rates and money supply by a central bank to influence the economy.

Capitalistic Economy

An economic system characterized by private ownership of the means of production and the creation of goods or services for profit.

Government Policies

Strategies and decisions made by governmental bodies to govern social, economic, and environmental matters affecting the nation or region.

Money Supply

The cumulative total of all money assets within an economy at a particular point in time.