问题
单项选择题
A primary advantage of the in-kind redemption process of exchange traded funds (ETFs) is that it:（）
A. reduces transaction costs for the investor.
B. reduces tax liability.
C. provides greater liquidity for shares of the ETF.
答案
参考答案：B
解析：
ETFs are typically cost-effective for the investor because they are passively managed and therefore have lower management fees than actively managed portfolios, but it's not a primary advantage of the in-kind redemption. The in-kind process has no effect on the liquidity of the ETF shares.