Find out what you learned

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Low fees are less important in bond ETFs than in comparable mutual funds.
Choose wisely. There is only one correct answer.
False. Since bonds are traditionally a low-return investment, the minimization of fees is more important.
2.
When you buy a fixed-income ETF that focuses on a particular type of bond, you expose yourself to additional risks.
Choose wisely. There is only one correct answer.
True. As a rule, a limited focus opens up a new field of risks.
3.
Individual bonds trade on the exchange like ETFs?
Choose wisely. There is only one correct answer.
False. Bonds are traded on the over-the-counter market.
4.
Fixed income is more actively traded than stocks?
Choose wisely. There is only one correct answer.
False. Stocks are traded much more frequently than bonds.
5.
Why do bond ETFs trade at premiums or discounts to net asset value?
Choose wisely. There is only one correct answer.
The lower liquidity of the bond market makes it difficult keep the price exactly at the ETF's net asset value. The bond market's reduced liquidity makes it difficult for arbitragers to keep the ETF price exactly on the net asset value.