Which of the following statements is correct?
A)A large, well-known corporation such as Proctor and Gamble would generally use financial intermediation to finance expansion of its factories.
B)On average, index funds outperform managed funds.
C)Unlike corporate bonds and stocks, checking accounts are a store of value.
D)Financial intermediaries are institutions through which savers can directly provide funds to borrowers.

Question

Quizplus · Accepted Answer

On average, index funds tend to outperform managed funds due to their lower fees and the difficulty of consistently beating the market through active management.

Which of the Following Statements Is Correct