Which of the Following Statements Is NOT Correct

question 49

Multiple Choice

Which of the following statements is NOT correct?

• A)Investors can purchase shares directly from an open-end fund at any time.
• B)The number of shares of an open-end fund is always changing.
• C)Open-end funds typically maintain some cash on hand in case investments exceed redemptions.
• D)There are many different categories of open-end mutual funds.

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Definitions:

Pollution Tax

A tax levied on the amount of pollution emitted by firms to incentivize reduction in environmental harm.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and goods.

External Costs

Costs that fall on third parties who are not directly involved in a transaction or economic activity.

Marginal Social Costs

The total cost to society of producing one extra unit of a good or service, including both private costs and any externalities.