Choose wisely. There is only one correct answer to each question.
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1.
If you see the letters MSCI in an index, you know you are dealing with what category of stocks?
International. The various MSCI indexes track international stocks.
2.
Which statement is false?
Index funds are all cheap. Given that index-fund managers aren't actively researching and selecting stocks, all index funds ought to be cheap.
3.
Which statement is true?
Index funds in the large-cap blend category can follow different indexes. Not all index funds are cheap--not even all large-blend index funds. Index funds in the large-blend category can follow different indexes--the most common of which is the SP 500.
4.
Index funds can have high annual expenses.
True. Despite not needing much management, some index funds still charge high annual expenses.
5.
Which of the following types of index funds is typically the least tax efficient?
Small-cap index fund. The small-cap funds eventually have to sell stocks that have grown too large for their indexes, and this creates taxable capital gains.
