The Major Difference Between Mutual Funds and Exchange Traded Funds

question 45

Multiple Choice

The major difference between mutual funds and exchange traded funds (ETFs) is

• A) ETFs can be bought or sold at their current price at any time during normal trading hours.
• B) mutual fund portfolios are always based on one of the major market indexes.
• C) ETFs invest in broadly diversified portfolios of securities.
• D) ETFs are actively managed.

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Definitions:

Closed Social Hierarchy

A social structure where individuals' positions are fixed based on aspects like birth, with little opportunity for mobility.

Capitalist System

An economic system characterized by private or corporate ownership of capital goods, where investments, production, and distribution are driven by market forces.

Cultural Capital

Non-financial social assets such as education, intellect, style of speech, dress, or physical appearance that promote social mobility beyond economic means.

Socioeconomic Class

A division of a society based on social and economic status, often categorizing people by income, education, and occupation.