The Investment Advisors Act of 1940 Sets Out Rules to Prevent

question 47

True/False

The Investment Advisors Act of 1940 sets out rules to prevent conflicts of interest, fraud, and excessive fees or charges for mutual fund shares.

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Definitions:

Tax Burden

The overall impact of taxes on an individual's or company's financial well-being, often expressed as a percentage of income or revenue.

Proportional

Pertaining to a relationship where changes in one quantity result in proportional changes in another quantity.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in its price.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.