Question 1

Back end loaded mutual funds are most appropriate for

Accepted Answer

A)  An investor with a short time horizon 
B)  An investor with a long time horizon 
C)  An investor who wants to purchase a no-load product 
D)  All investors 
E)  Back end loaded mutual funds are never appropriate 
A)  An investor with a short time horizon 
B)  An investor with a long time horizon 
C)  An investor who wants to purchase a no-load product 
D)  All investors 
E)  Back end loaded mutual funds are never appropriate

Question 2

Mutual funds may be bought and sold through

Accepted Answer

A)  mutual savings banks and brokerage firms. 
B)  funds salespeople and mutual savings banks. 
C)  brokerage firms and fund salespeople. 
D)  brokerage firms and funds exchange. 
E)  fund exchange and fund salespeople. 
A)  mutual savings banks and brokerage firms. 
B)  funds salespeople and mutual savings banks. 
C)  brokerage firms and fund salespeople. 
D)  brokerage firms and funds exchange. 
E)  fund exchange and fund salespeople.

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.
-A growth mutual fund invests in stocks that are very likely to [pay | not pay] dividends.

Accepted Answer

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

Question 4

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.
-Usually the management firm of a mutual fund also serves as the [custodian | investment advisor] of the fund.

Accepted Answer

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

Question 5

Which of the following bond mutual funds would provide tax-free income?

Accepted Answer

A)  government bond fund 
B)  municipal bond fund 
C)  convertible bond fund 
D)  mortgage-backed bond fund 
E)  all of the above 
A)  government bond fund 
B)  municipal bond fund 
C)  convertible bond fund 
D)  mortgage-backed bond fund 
E)  all of the above

Question 6

When you buy shares in a no-load fund,you will pay the NAV.

Accepted Answer

A) True 
 B)False

Question 7

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.
-Mutual funds must value their securities [monthly | daily].

Accepted Answer

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

Question 8

Mutual funds are actually comprised of two or more companies.

Accepted Answer

A) True 
 B)False

Question 9

The maximum sales charge a no load mutual fund can charge

Accepted Answer

A)  7% of the net asset value. 
B)  7% of the purchase price. 
C)  8 1/2% of the net asset value. 
D)  8 1/2% of the purchase price. 
E)  none of these. 
A)  7% of the net asset value. 
B)  7% of the purchase price. 
C)  8 1/2% of the net asset value. 
D)  8 1/2% of the purchase price. 
E)  none of these.

Question 10

Back-ended load funds offer more liquidity to investors than no-load funds.

Accepted Answer

A) True 
 B)False

Question 11

Exchange traded mutual funds are known as closed-end mutual funds.

Accepted Answer

A) True 
 B)False

Question 12

Redeeming your mutual fund shares might result in a charge called

Accepted Answer

A)  a back-end load. 
B)  a front-end load. 
C)  a redemption tax. 
D)  a management fee. 
E)  none of these. 
A)  a back-end load. 
B)  a front-end load. 
C)  a redemption tax. 
D)  a management fee. 
E)  none of these.

Question 13

Closed-end investment companies are characterized by

Accepted Answer

A)  number of shares determined by demand. 
B)  price based on net asset value per share. 
C)  variable transaction costs. 
D)  availability for sale or purchase on security markets. 
E)  value dependent on quantity of shares held. 
A)  number of shares determined by demand. 
B)  price based on net asset value per share. 
C)  variable transaction costs. 
D)  availability for sale or purchase on security markets. 
E)  value dependent on quantity of shares held.

Question 14

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.
-[Both load and no-load | Only no-load] funds can charge a redemption fee.

Accepted Answer

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

Question 15

For most investors,the best way to deal in foreign securities is through an international mutual fund.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following combines the operating characteristics of an open-end fund with some of the trading characteristics of a closed-end fund?

Accepted Answer

A)  preferred fund 
B)  common fund 
C)  exchange traded fund 
D)  net-asset fund 
E)  Unit Investment Trust 
A)  preferred fund 
B)  common fund 
C)  exchange traded fund 
D)  net-asset fund 
E)  Unit Investment Trust

Question 17

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.
-Unit investment trusts tend to be an [expensive | inexpensive] ways to buy a diversified portfolio.

Accepted Answer

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

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 investment objective of bond mutual funds is [growth | income].

Accepted Answer

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

Question 19

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.
-Unit investment trusts are [actively | passively] managed pools of investments.

Accepted Answer

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

Question 20

The ____ is a service offered by mutual funds that helps an investor earn compound interest on their investments.

Accepted Answer

A)  retirement plan 
B)  automatic withdrawal plan 
C)  automatic reinvestment plan 
D)  conversion privilege 
E)  automatic investment plan 
A)  retirement plan 
B)  automatic withdrawal plan 
C)  automatic reinvestment plan 
D)  conversion privilege 
E)  automatic investment plan

Back end loaded mutual funds are most appropriate for

Mutual funds may be bought and sold through

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. -A growth mutual fund invests in stocks that are very likely to [pay | not pay] dividends.

Which of the following bond mutual funds would provide tax-free income?

When you buy shares in a no-load fund,you will pay the NAV.

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. -Mutual funds must value their securities [monthly | daily].

Mutual funds are actually comprised of two or more companies.

The maximum sales charge a no load mutual fund can charge

Back-ended load funds offer more liquidity to investors than no-load funds.

Exchange traded mutual funds are known as closed-end mutual funds.

Redeeming your mutual fund shares might result in a charge called

Closed-end investment companies are characterized by

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. -[Both load and no-load | Only no-load] funds can charge a redemption fee.

For most investors,the best way to deal in foreign securities is through an international mutual fund.

Which of the following combines the operating characteristics of an open-end fund with some of the trading characteristics of a closed-end fund?

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 investment objective of bond mutual funds is [growth | income].

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. -Unit investment trusts are [actively | passively] managed pools of investments.

The ____ is a service offered by mutual funds that helps an investor earn compound interest on their investments.

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

Exam 13: Investing in Mutual Funds

Back end loaded mutual funds are most appropriate for

Mutual funds may be bought and sold through

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. -A growth mutual fund invests in stocks that are very likely to [pay | not pay] dividends.

Which of the following bond mutual funds would provide tax-free income?

When you buy shares in a no-load fund,you will pay the NAV.

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. -Mutual funds must value their securities [monthly | daily].

Mutual funds are actually comprised of two or more companies.

The maximum sales charge a no load mutual fund can charge

Back-ended load funds offer more liquidity to investors than no-load funds.

Exchange traded mutual funds are known as closed-end mutual funds.

Redeeming your mutual fund shares might result in a charge called

Closed-end investment companies are characterized by

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. -[Both load and no-load | Only no-load] funds can charge a redemption fee.

For most investors,the best way to deal in foreign securities is through an international mutual fund.

Which of the following combines the operating characteristics of an open-end fund with some of the trading characteristics of a closed-end fund?

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 investment objective of bond mutual funds is [growth | income].

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. -Unit investment trusts are [actively | passively] managed pools of investments.

The ____ is a service offered by mutual funds that helps an investor earn compound interest on their investments.

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