Disadvantages of ETFs Include All of the Following Except

question 79

Multiple Choice

Disadvantages of ETFs include all of the following except

• A) investors incur a bid-ask spread when purchasing.
• B) investors must pay a broker fee when purchasing.
• C) prices are only quoted once each day.
• D) prices can depart from NAV at times.

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Definitions:

Domestic Opportunity Cost

The cost of forgoing the next best alternative when choosing to produce a good or service domestically.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

Domestic Opportunity Cost

The cost of forgoing the next best alternative use of a country's resources when choosing to produce a particular good or service.

Domestic Supply

The total amount of a good or service that is available from domestic producers within a country, influencing national prices and availability.