A Fund That Is Basically an Index Fund That Trades

question 89

Multiple Choice

A fund that is basically an index fund that trades like a closed-end fund is called a(n) :

• A)open-end fund.
• B)money market fund.
• C)exchange-traded fund.
• D)mutual fund.
• E)depository receipt.

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Definitions:

Ownership

The legal right or interest in something, often involving assets like property, businesses, or investments.

Contract Rate

The agreed-upon interest rate specified in a contract, such as in loans, leases, or bonds.

Market Rate

The prevailing interest rate available in the marketplace for securities of similar risk and maturity to a bond.

Discount

A reduction from the usual cost of something, often provided as an incentive to encourage purchase.