40-42

40) With no change of inflation, an increase in the domestic interest rate shifts the demand curve for assets of domestic currency to the and causes the domestic currency to A) right; depreciate B) right; appreciate C) left; depreciate D) left; appreciate 41) Which of the following is NOT true about index funds? A) They select and hold stocks to match the performance of a stock index. B) They have lower fees. C) They do not require managers to select stocks and decide when to buy and sell. D) Index funds underperform active managed funds according to consensus. 42). Which of the following is NOT true about mutual funds? A) All else being equal, you want to own funds that have the lowest possible cost. B) ETFs are investment funds that allow investors to trade index portfolios like shares of stock C) The past performance of a mutual fund is an indicator of future outcomes. D) Relative to people in their 60s, the average asset allocation across all 401(k) plans for people in their 20s is higher for target rate funds