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:

Price Elasticity

An indicator of consumer sensitivity to price fluctuations, represented by the extent to which demand for a product varies in response to its price adjustments.

Pay-As-You-Go Principle

A financing method where expenditures are not financed by borrowing but from current revenues.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Personal Savings

Money that individuals set aside from their income, after consumption and taxation, for future use or investment.