Identify at least two reasons an investor may want to consider an index fund over a managed (mutual) fund. What are these reasons?
What will be an ideal response?
(1) Managed funds or mutual funds tended to perform worse than index funds. Also (2) the fees for managed funds tend to run about 1.5% a year compared to 0.5% or less for index funds. The lower fees, even at the same return, would provide an investor with a much higher return over the long run.
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Firms that participate in regular open market transactions with the Federal Reserve are called
A) Treasury banks. B) Federal Reserve partners. C) primary dealers. D) secondary market banks.
Commercial banks' assets include ________
A. bank deposits of individuals and businesses and bank reserves B. loans to individuals and businesses and government securities C. bank reserves and the deposits in M2 D. government securities and borrowed funds
By the 1830s, young women and children
(a) were a very important portion of the industrial work force, about 40%. (b) were a minor portion of the industrial work force, about 10%. (c) were a moderate portion of the industrial work force, about 25%. (d) were not a part of the "industrial" work force because legislation forbade it in order to protect young women and children.
The tax reforms of the 1980s
a. increased the percent of personal income taxed b. shifted most the tax burden onto the corporation c. reduced federal, state and local sales taxes d. reduced tax brackets and the marginal tax rates within the brackets e. resulted in reducing government deficits