​Which of the following statements is incorrect?   a….

​Which of the following statements is incorrect?   a.  ​Exchange-traded funds (ETFs) are designed to mimic particular stock indexes and are traded on a stock exchange.   b.  ​ETFs have very high expense ratios.    c.  ​ETFs differ from most open-end and closed-end funds in that they are not actively managed.   d.  ​One disadvantage of ETFs is that each purchase of additional shares must be done through the exchange where they are traded.   ANSWER:   b POINTS:   1 DIFFICULTY:   Challenging

Which of the following is true of money market instruments?…

Which of the following is true of money market instruments?   a.  Their yields are highly correlated over time.   b.  They typically sell for par value when they are initially issued (especially T-bills and commercial paper).   c.  Treasury bills have the highest yield.   d.  They all make periodic coupon (interest) payments.   e.  Their yields are highly correlated over time AND they typically sell for par value when they are initially issued (especially T-bills and commercial paper).   ANSWER:   a POINTS:   1 DIFFICULTY:   Moderate