Exchange-Traded Funds Can Be

question 89

Multiple Choice

Exchange-traded funds can be

• A) traded throughout the day.
• B) purchased on margin.
• C) sold short.
• D) all of the above

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Definitions:

Cost of Trade Credit

The effective interest rate associated with taking discounts offered by suppliers for early payment or the cost of forgoing those discounts.

Net 30

A payment term indicating that full payment is due within 30 days of the invoice date.

Terms

Conditions and parameters under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and maturity date.

Cost of Trade Credit

The cost associated with the terms of credit extended by suppliers, including discounts for early payment and penalties for late payment.