Exchange Traded Funds

question 23

Multiple Choice

Exchange traded funds

• A) Are exactly the same as index mutual funds.
• B) Can be bought and sold like common stocks.
• C) Can be sold short.
• D) a and b.
• E) b and c.

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Definitions:

Aggregate Supply

The sum total of products and services that corporations in an economic system plan to offer for sale during a given time frame.

Recessionary Gap

A situation where an economy's real GDP is lower than its potential GDP, leading to unemployment and underutilized resources.

Self-correcting Economy

An economy that possesses mechanisms to automatically adjust itself to balance out recessions or inflations without external intervention.

Recessionary Gap

The difference between the actual output of an economy and its potential output if all resources were fully employed, indicating underperformance.