Which One of the Following Statements Concerning ETFs Is Correct

question 22

Multiple Choice

Which one of the following statements concerning ETFs is correct?

• A) ETFs are based solely on U.S. indexes.
• B) The ETF based on the Standard & Poor's 500 Index is priced at 1/10 the value of that index.
• C) Spiders are based on the DJIA.
• D) The ETF based on the Dow is priced at 1/10 of the value of the DJIA.

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Definitions:

Direct Materials Cost

The cost of raw materials directly used in the production of goods or services.

Product Costs

Costs that are incurred to acquire or manufacture a product and include direct materials, direct labor, and manufacturing overhead.

Relevant Range

The band of normal activity level or volume in which specific fixed and variable cost assumptions hold true.

Financial Reporting

Financial reporting involves the disclosure of financial results and related information by a company to its stakeholders, to help in making economic decisions.