Which of the Following Statements Is Generally True When Comparing

question 35

Multiple Choice

Which of the following statements is generally true when comparing mutual funds to exchange traded funds?

• A)Exchange traded funds are more tax efficient than mutual funds.
• B)Mutual funds are more efficient than exchange traded funds.
• C)Exchange traded funds and mutual funds are equally tax efficient.
• D)In order to know which is more tax efficient we must first know what type of investments are held in the respective funds.

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Definitions:

Stressor

Any event, experience, or environmental stimulus that causes stress in an individual.

Coping Method

Strategies or techniques used by individuals to manage, navigate, or adapt to stressful situations and emotional challenges.

Comfort Food

Food that provides a nostalgic or sentimental value to someone, often high in calories or carbohydrates, and easily consumed, which supposedly provides comfort or relieves stress.

Social Factors

Elements within society such as family, culture, and education that influence an individual's living conditions and personal choices.