单选题 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.

【正确答案】 B

【答案解析】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.