An Index Fund

question 59

Multiple Choice

An index fund

• A)holds only stocks and bonds that are indexed to inflation.
• B)holds all the stocks in a given stock index.
• C)guarantees a return that follows the index of leading economic indicators.
• D)typically has a lower return than a managed fund.

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Definitions:

Assimilation

The cognitive process of fitting new information into existing cognitive schemas, perceptions, and understanding.

Basic Trust

A concept in psychology describing the fundamental sense of safety and reliability in the world, often developed in early childhood.

Conscious Memory

The ability to recall and recognize information and past experiences that one can consciously acknowledge and describe.

Schemas Associated

Mental structures that represent aspects of the world and influence understanding, recognition, and recall by organizing information.