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Compared with open-end funds, closed-end funds a. Tend to invest in less liquid assets b. Tend...

Compared with open-end funds, closed-end funds

a. Tend to invest in less liquid assets

b. Tend to invest in foreign assets

c. Tend to invest in Treasury securities

d. Are actively managed to seek a target return

If output were at potential and inflation were 4 percent (2 percent above the central bank’s target), the appropriate setting of the federal funds rate under a Taylor would be

a. 4 percent

b. 7 percent

c. 6 percent

d. Cannot be determined from the information given
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Answer #1

a) Answer is D The variance between Open ended & close ended securities are investment period- In Simple you wont be able withdraw money anytime on close ended securities -Which has fixed time period. So the answer is Funds are actively managed to seek a target return

b) Answer is D- Since we have missing information such as current inflation,Inflation coefficient

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