Index Funds Have Provided Competitive Rates of Return Because

question 59

Multiple Choice

Index funds have provided competitive rates of return because

• A) their costs are lower than other stock funds.
• B) it is difficult to outperform the market.
• C) they have very low turnover rates.
• D) they are tax efficient.
• E) all of the above.

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Definitions:

Stock Of Money

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and liquid financial assets.

Balance Of Trade

The difference in value between a country's imports and exports over a certain period.

Gross Domestic Product

GDP is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Intermediate Goods

Products used in the production process to make other goods, but are not part of the final product.