A Major Difference Between a Closed-End Investment Company and an Open-End

question 41

Multiple Choice

A major difference between a closed-end investment company and an open-end investment company is that:

• A)closed-end investment companies are generally much riskier.
• B)their security portfolios are substantially different.
• C)closed-end investment companies are passive investments and open-ends are not.
• D)closed-end companies have a more fixed capitalization.

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Definitions:

George Washington

A Founding Father of the United States, first President of the United States, serving from 1789 to 1797.

Leptin

A key hormone involved in regulating energy intake and expenditure, including appetite and metabolism.

Appetite

A natural desire to satisfy a bodily need, especially for food.

Fat Cells

Cells specialized in storing energy in the form of fat, also known as adipocytes.