Compared to Open-End Mutual Funds, Exchange-Traded Funds Generate Much More

question 20

True/False

Compared to open-end mutual funds, exchange-traded funds generate much more capital gain income that must be distributed to their shareholders, who must pay tax on the gains.

---

Definitions:

Pulp

Pulp refers to a raw material consisting of cellulose plant fibers that are used in creating paper or other products through various processing methods.

Paper Production

The process of manufacturing paper from raw materials like wood pulp, involving various stages such as pulping, pressing, and drying.

Inferior Good

A good whose demand decreases as the income of consumers increases, inversely related to income levels.

Income of Buyers

Refers to the purchasing power or total earnings of consumers within a market, impacting their ability to buy goods and services.