Advantages of ETFs Versus Stock Index Mutual Funds Are

question 116

Multiple Choice

Advantages of ETFs versus stock index mutual funds are

• A) lower management fees.
• B) major ETFs are more liquid.
• C) lower risk.
• D) A and B are correct.

---

Definitions:

Liability

Refers to the state of being legally responsible for something, typically referring to debts or obligations.

Common Carrier

A business or agency that is available to the public for transportation of persons, goods, or messages, under a regulatory or legal obligation to serve all customers.

Reasonable Care

A legal standard requiring individuals to act with the caution and prudence that a sensible person would use in similar circumstances to avoid harm to others.

Natural Disaster

A major adverse event resulting from natural processes of the Earth, such as floods, hurricanes, earthquakes, or tornadoes.