In Constructing a Model,economists

question 168

Multiple Choice

In constructing a model,economists:

• A)might use a computer simulation.
• B)avoid making any assumptions.
• C)assume that all relevant factors are constantly changing.
• D)are prohibited from using mathematics.

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Definitions:

More Liquid

Describes an asset or market that allows for assets to be bought or sold quickly without significantly affecting the asset's price.

Front-end Commission

A fee paid when purchasing shares of a mutual fund, upfront, which reduces the amount invested from the start.

Expense Ratio

The annual fee that all funds and exchange-traded funds charge their shareholders, expressed as a percentage of the fund's total assets.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.