Question 1

Closed-ended mutual funds are guaranteed,they cannot lose value.

Accepted Answer

A) True 
 B)False  False

Question 2

The major reason that investors use mutual funds is their contractual plans which force regular investing.

Accepted Answer

A) True 
 B)False  False

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-You [could | could not] learn in the financial press whether your fund charged a redemption fee.

Accepted Answer

a

Question 4

Loads are transaction charges for mutual funds.

Accepted Answer

A) True 
 B)False

Question 5

Low-load funds do not charge a commission upon initial purchase.

Accepted Answer

A) True 
 B)False

Question 6

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

Accepted Answer

A)  management fee. 
B)  back-end load. 
C)  transaction fee. 
D)  12(b)-1 fee. 
E)  low-load. 
A)  management fee. 
B)  back-end load. 
C)  transaction fee. 
D)  12(b)-1 fee. 
E)  low-load.

Question 7

The fund whose main objective is growth is known as a(n)____ fund.

Accepted Answer

A)  balanced 
B)  preferred stock 
C)  money market 
D)  index 
E)  none of these 
A)  balanced 
B)  preferred stock 
C)  money market 
D)  index 
E)  none of these

Question 8

A mutual fund's price per share will increase if its underlying holdings increase in value.

Accepted Answer

A) True 
 B)False

Question 9

Balanced funds invest in a proportionate amount of common and preferred stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Value funds are comprised of stocks with [low | high] PE ratios.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 11

By using automatic reinvestment plans,dividend and capital gains are used to automatically buy additional shares in the fund.

Accepted Answer

A) True 
 B)False

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The securities owned by a mutual fund are in the custody of [the management company | an independent bank].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

Another name for a mutual fund is

Accepted Answer

A)  a closed-end investment company. 
B)  an open-end investment company. 
C)  a mutual investment company. 
D)  an open investment company. 
E)  a closed investment company. 
A)  a closed-end investment company. 
B)  an open-end investment company. 
C)  a mutual investment company. 
D)  an open investment company. 
E)  a closed investment company.

Question 14

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Accepted Answer

A)  investment advisor 
B)  custodian 
C)  transfer agent 
D)  distributor 
E)  money manager 
A)  investment advisor 
B)  custodian 
C)  transfer agent 
D)  distributor 
E)  money manager

Question 15

Spiders and Diamonds are examples of ETF's.

Accepted Answer

A) True 
 B)False

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The market value of your mutual fund shares will move in the [same | opposite] direction as the market value of the underlying securities.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 17

Closed-end mutual funds always charge an upfront fee to make a purchase.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The primary reason for investing in mutual funds is [professional management | diversification].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 19

In the Wall Street Journal's listing of mutual funds,an "r" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

Accepted Answer

A)  front-end load 
B)  back-end load 
C)  12b-1 fee 
D)  management fee 
E)  none of the above 
A)  front-end load 
B)  back-end load 
C)  12b-1 fee 
D)  management fee 
E)  none of the above

Question 20

Both load and no-load funds will always charge a

Accepted Answer

A)  transaction fee. 
B)  12(b)-1 fee. 
C)  management fee. 
D)  fee on the sale of the shares. 
E)  redemption fee. 
A)  transaction fee. 
B)  12(b)-1 fee. 
C)  management fee. 
D)  fee on the sale of the shares. 
E)  redemption fee.

Closed-ended mutual funds are guaranteed,they cannot lose value.

The major reason that investors use mutual funds is their contractual plans which force regular investing.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -You [could | could not] learn in the financial press whether your fund charged a redemption fee.

Loads are transaction charges for mutual funds.

Low-load funds do not charge a commission upon initial purchase.

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

The fund whose main objective is growth is known as a(n)____ fund.

A mutual fund's price per share will increase if its underlying holdings increase in value.

Balanced funds invest in a proportionate amount of common and preferred stocks and bonds.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Value funds are comprised of stocks with [low | high] PE ratios.

By using automatic reinvestment plans,dividend and capital gains are used to automatically buy additional shares in the fund.

Another name for a mutual fund is

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Spiders and Diamonds are examples of ETF's.

Closed-end mutual funds always charge an upfront fee to make a purchase.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The primary reason for investing in mutual funds is [professional management | diversification].

In the Wall Street Journal's listing of mutual funds,an "r" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

Both load and no-load funds will always charge a

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

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Exam 13: Investing in Mutual Funds

Closed-ended mutual funds are guaranteed,they cannot lose value.

The major reason that investors use mutual funds is their contractual plans which force regular investing.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -You [could | could not] learn in the financial press whether your fund charged a redemption fee.

Loads are transaction charges for mutual funds.

Low-load funds do not charge a commission upon initial purchase.

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

The fund whose main objective is growth is known as a(n)____ fund.

A mutual fund's price per share will increase if its underlying holdings increase in value.

Balanced funds invest in a proportionate amount of common and preferred stocks and bonds.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Value funds are comprised of stocks with [low | high] PE ratios.

By using automatic reinvestment plans,dividend and capital gains are used to automatically buy additional shares in the fund.

Another name for a mutual fund is

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Spiders and Diamonds are examples of ETF's.

Closed-end mutual funds always charge an upfront fee to make a purchase.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The primary reason for investing in mutual funds is [professional management | diversification].

In the Wall Street Journal's listing of mutual funds,an "r" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

Both load and no-load funds will always charge a

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters