An Index Fund Limits Its Portfolio to

question 40

Multiple Choice

An index fund limits its portfolio to

• A)high quality securities
• B)stocks that respond to changes in the consumer prices (i.e., Consumer Price Index)
• C)stocks included in an aggregate measure of stock prices
• D)stocks of firms in a particular industry

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Definitions:

Political Logrolling

A practice in politics where two or more members agree to vote for each other's proposed bills or policies, often regardless of their individual merits, to achieve their respective objectives.

U.S. Senate

One of the two chambers of the United States Congress, responsible for making and passing federal laws.

Farm Bill

Comprehensive legislation passed by Congress that determines the policies for agricultural and food programs.

Food, Conservation, And Energy Act

This act, often referred to as the 2008 Farm Bill, aims to regulate various aspects of agriculture, energy production, and food assistance programs in the United States.