Investing in a Bond Index Portfolio Is an Example of A(n)____

question 11

Multiple Choice

Investing in a bond index portfolio is an example of a(n) ____ approach. Investing in an equity portfolio that mirrors the stock market is an example of a(n) ____ approach.

• A)passive; active
• B)active; active
• C)active; passive
• D)passive; passive

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Definitions:

Economic Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, real income, employment, industrial production, and wholesale-retail sales.

Keynesian View

An economic theory proposing that government intervention, through monetary and fiscal policy, can mitigate the adverse effects of recessions and depressions.

Balanced Budget

A financial statement demonstrating that revenues and expenditures are equal, leading to no deficit for the period.

Fiscal Policy

Government strategies for adjusting its spending levels and tax rates to influence a nation's economy.