How Should You Approach Broker Fees and Why

question 146

Multiple Choice

How should you approach broker fees and why?

• A) Seek high ones, because it signals a better investment product
• B) Seek high ones, because money managers will have a stronger incentive to make you more money
• C) Seek low ones, because only top investors need to pay the higher price
• D) Seek low ones, because no money manager could be worth a premium price

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Definitions:

Reverse Faults

Faults where the hanging wall moves upward relative to the footwall, usually as a result of compression.

Normal Faults

Fractures in the Earth's crust where one block of rock moves down relative to another block due to tensional forces.

Joints

Natural fractures or separations in rocks without displacement, often resulting from the rock's response to stress.

Folds

Structures formed by the bending and warping of rocks under pressure during geological processes, often seen in mountain ranges.