Which of the Following Statements Is NOT Correct

question 62

Multiple Choice

Which of the following statements is NOT correct?

• A)Exchange-traded funds (ETFs)are designed to mimic particular stock indexes and are traded on a stock exchange.
• B)ETFs have very high expense ratios.
• C)ETFs differ from most open-end and closed-end funds in that they are not actively managed.
• D)One disadvantage of ETFs is that each purchase of additional shares must be done through the exchange where they are traded.

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Definitions:

Breach

The violation or non-fulfillment of a legal obligation, agreement, or duty.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed by the party or parties to be charged, in order to be legally enforceable.

Oral Contract

An agreement between parties that is spoken rather than written but is still legally binding.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no formal contract exists between the parties.