Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A)Closed-end funds issue an unlimited number of shares as liabilities.
• B)Open-end funds supply limited number of shares to investors.
• C)Open-end funds need not stand ready to buy back previously issued shares from investors at the current market price for the fund's shares.
• D)At a given market price, the supply of open-end fund shares is perfectly inelastic.
• E)The number of outstanding shares of a closed-ended fund may change when the issuing fund chooses to repurchase them.

---

Definitions:

Competing Products

Goods or services offered by different businesses that seek to satisfy the same customer needs or market demands.

Internal Standard

A benchmark or criterion established within an organization to ensure consistency and quality in its operations or production.

Life-Cycle Costs

The total cost of owning, operating, maintaining, and disposing of a product or system over its life span.

Transactional Costs

Expenses incurred during trading, beyond the price of the goods, including search and information costs, bargaining costs, and enforcement costs.