Which of the Following Is Not True Regarding ETFs

question 25

Multiple Choice

Which of the following is not true regarding ETFs?

• A)They trade on exchanges like individual stocks.
• B)They can be bought on margin or sold short.
• C)ETFs have been adversely affected by growth in closed-end funds.
• D)Assets held in ETFs exceed assets held in mutual funds.

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Definitions:

Federal Reserve System

The central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing banking services.

Fractional Reserve System

The fractional reserve system is a banking system in which banks hold reserves that are less than the amount of their customers' deposits, allowing them to lend or invest the remainder to earn interest.

Interest-Rate Ceilings

Caps set on the interest rate that can be charged on loans, often to protect consumers from excessively high rates.

Bankers

Individuals or institutions that are engaged in the business of dealing in money, providing loans, and accepting deposits.