Question

an investment security that offers the diversification of an index mutual fund but trades like a stock throughout the day is called: an index fund an exchange - traded fund a money market fund a mutual fund question 2 1 pts this type of fund sets a predetermined limit on the amount of shares that it can sell. closed - end fund money market fund open - end fund index fund question 3 1 pts the type of mutual fund that intends to mirror the returns of a market index, like the s&p 500, is called: a bond fund a mutual fund an index fund an exchange - traded fund

Explanation:

• Question 1: Exchange - traded funds (ETFs) offer the diversification of an index mutual fund and trade like stocks throughout the day. Index funds are a type of mutual fund that tracks an index but do not trade like stocks throughout the day. Money market funds are low - risk, short - term investment funds. Mutual funds in general do not trade like stocks throughout the day.
• Question 2: Closed - end funds set a predetermined limit on the amount of shares that they can sell. Open - end funds can issue an unlimited number of shares. Money market funds are a type of mutual fund (either open - end or closed - end in structure but not defined by share - limit). Index funds can be open - end or closed - end but are defined by their index - tracking nature, not share - limit.
• Question 3: Index funds are designed to mirror the returns of a market index such as the S&P 500. Bond funds invest in bonds. Mutual funds is a broad category. Exchange - traded funds can be index - tracking but the key term here is "mutual fund" which narrows it down. An index fund is a type of mutual fund that specifically mirrors an index.

Answer:

1. an exchange - traded fund
2. closed - end fund
3. an index fund