Activity 10/10

What does ETF stand for?

• Exchange Traded Fund

• Electronic Trading Fund

• Equity Transfer Fund

• Economic Transaction Fee

What types of investments can be included in an ETF?

• Stocks only

• Commodities only

• Bonds only

• All of the above

How can ETFs be bought or sold?

• Through a mutual fund company

• Through a bank

• On a stock exchange

• Through a financial advisor

What is a marketable security?

• A security that can be easily bought and sold on exchanges

• A security that can only be bought and sold through a broker

• A security that can only be bought and sold in large quantities

• A security that can only be bought and sold during market hours

What are the benefits of investing in ETFs?

• Low-risk investments

• More cost-effective and liquid compared to mutual funds

• Popular choice for diversification

• All of the above

What are the risks of investing in ETFs?

• Market fluctuation and risks of underlying investments

• Management fees and other expenses

• Shares bought and sold at market price

• All of the above

What is a bond?

• A type of loan issued by a company

• A type of stock issued by a government

• A type of investment fund

• A type of commodity

What is the main risk associated with bonds?

• Credit risk

• Interest rate risk

• Market volatility risk

• Inflation risk

What is an index fund?

• A portfolio of stocks or bonds designed to mimic the performance of a financial market index

• A type of mutual fund that tracks a particular market index

• A type of bond issued by the government

• A type of ETF that invests in multiple industries

What is the difference between an index fund and a regular mutual fund?

• Index funds have lower cost structure

• Regular mutual funds are actively managed

• Index funds track a specific market index

• All of the above