The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Index mutual funds purchase shares of stock in those companies which are included in the market based indexes.

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-Index mutual funds purchase shares of stock in those companies which are included in the market based indexes.

Quizplus · Accepted Answer

The given figure shows the demand and supply curves of shares of stock. The statement about index mutual funds purchasing shares of stock in companies included in market-based indexes is not related to the given figure and is a separate statement. However, the statement is true.

The Figure Given Below Shows the Demand [D and D']