Advantages of ETFs Over Mutual Funds Include All but Which

question 89

Multiple Choice

Advantages of ETFs over mutual funds include all but which one of the following?

• A) ETFs trade continuously, so investors can trade throughout the day.
• B) ETFs can be sold short or purchased on margin, unlike fund shares.
• C) ETF providers do not have to sell holdings to fund redemptions.
• D) ETF values can diverge from NAV.

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Definitions:

Manufacture

The process of producing goods on a large scale using labor, machines, tools, and chemical or biological processing.

Demand Curves

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Market Equilibrium

A condition in which the supply of a good matches demand, leaving neither surplus nor shortage in the market.