Which of the Following Characteristics Apply to Exchange-Traded Funds (ETFs)

question 91

Multiple Choice

Which of the following characteristics apply to exchange-traded funds (ETFs) ?
I. Unlimited number of outstanding shares.
II. Typically track the performance of some index.
III. Market prices reflect demand for the fund rather than NAV.
IV. Shares are purchased from and redeemed by the investment company managing the fund.

• A) I and II only
• B) II and III only
• C) I, II and III only
• D) I, II and IV only

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Definitions:

Nondeclarative Memory

A type of long-term memory including procedural memory and habits that operate on an unconscious level.

Implicit Memory

Memory in which task execution is aided by previous experiences, with the individual unaware of these prior experiences.

Iconic Memory

A type of visual memory that holds a brief, fleeting replica of an image after the original stimulus is gone.

Effortful Processing

The active and conscious encoding of information into the memory system, which often requires attention and effort.