Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A)The net asset value equals the total market value of the assets of the fund.
• B)The net asset value equals the total market value of the assets of the fund divided by the number of shares in the funds outstanding.
• C)The net asset value equals the number of shares in the funds outstanding divided by the total market value of the assets of the fund.
• D)The net asset value equals the total market value of the assets of the fund multiplied by the number of shares in the funds outstanding.

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Definitions:

Toxic Assets

Financial assets whose value has dropped significantly and are difficult to sell, often because the risk of default is higher than originally anticipated.

Subprime Mortgage

A type of home loan provided to individuals with poor credit histories, which carries a higher risk of default and higher interest rates.

2008 Financial Crisis

A global financial downturn triggered by the collapse of the housing bubble in the United States, leading to widespread economic contraction, failures of major banks and financial institutions, and significant government interventions.

Housing Bubble

A situation in real estate markets characterized by high demand, low supply, and inflated prices that eventually lead to a sharp decline.