Question 1

The current market value of all the securities a mutual fund owns is called the

Accepted Answer

A)  market value. 
B)  par value. 
C)  net asset value. 
D)  book value. 
E)  liquidation value. 
A)  market value. 
B)  par value. 
C)  net asset value. 
D)  book value. 
E)  liquidation value.

Question 2

Having money taken automatically from your paycheck and put into a mutual fund is an example of

Accepted Answer

A)  an automatic investment plan. 
B)  an automatic reinvestment plan. 
C)  a systematic withdrawal plan. 
D)  a conversion privilege. 
E)  none of these. 
A)  an automatic investment plan. 
B)  an automatic reinvestment plan. 
C)  a systematic withdrawal plan. 
D)  a conversion privilege. 
E)  none of these.

Question 3

The major benefit to small investors of mutual funds is diversification.

Accepted Answer

A) True 
 B)False

Question 4

Open ended mutual funds can be traded on an intraday basis.

Accepted Answer

A) True 
 B)False

Question 5

A fund that invests only in a particular industry would be a ____ fund.

Accepted Answer

A)  money market 
B)  maximum capital 
C)  sector 
D)  balanced 
E)  bond 
A)  money market 
B)  maximum capital 
C)  sector 
D)  balanced 
E)  bond

Question 6

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.
-One type of [stock | bond] fund provides tax-free income.

Accepted Answer

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

Question 7

What type of REIT is most attractive to income oriented investors?

Accepted Answer

A)  equity 
B)  mortgage 
C)  hybrid 
D)  unit trust 
E)  exchange-traded 
A)  equity 
B)  mortgage 
C)  hybrid 
D)  unit trust 
E)  exchange-traded

Question 8

A no-load fund has no

Accepted Answer

A)  sales charges. 
B)  administrative charges. 
C)  management charges. 
D)  tax charges. 
E)  12(b)-1 fees. 
A)  sales charges. 
B)  administrative charges. 
C)  management charges. 
D)  tax charges. 
E)  12(b)-1 fees.

Question 9

Mutual funds are governed by the Investment Company Act of 1940.

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.
-The cost of buying shares in a load fund is [high | low] compared to the commissions charged for buying stock.

Accepted Answer

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

Question 11

Mutual funds may be classified by the types of securities they purchase.

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.
-There are [more | fewer] mutual funds than there are stocks listed on the New York Stock Exchange.

Accepted Answer

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

Question 13

Open ended mutual funds typically offer more diversification than an individual security.

Accepted Answer

A) True 
 B)False

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.
-A quotation for a mutual fund shows a NAV of $9.60 and an offer price of $10.00.With an investment of $1,000,you could buy [104.17 | 100] shares.

Accepted Answer

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

Question 15

A(n)____ actually runs the portfolio and makes the buy and sell decisions

Accepted Answer

A)  transfer agent 
B)  distributor 
C)  money manager 
D)  investment advisor 
E)  c and d 
A)  transfer agent 
B)  distributor 
C)  money manager 
D)  investment advisor 
E)  c and d

Question 16

Index funds are actively managed.

Accepted Answer

A) True 
 B)False

Question 17

Using the information below,at what price per share would you buy these mutual fund shares?

Accepted Answer

A)  $38.42 
B)  $38.49 
C)  $38.35 
D)  $40.34 
E)  none of the above 
A)  $38.42 
B)  $38.49 
C)  $38.35 
D)  $40.34 
E)  none of the above

Question 18

Unit investment trusts have the following characteristics

Accepted Answer

A)  They represent shares of a managed investment 
B)  They are traditionally made up of fixed income securities 
C)  Returns are fairly predictable 
D)  A & C 
E)  B & C 
A)  They represent shares of a managed investment 
B)  They are traditionally made up of fixed income securities 
C)  Returns are fairly predictable 
D)  A & C 
E)  B & C

Question 19

Load fees charged on mutual funds help insure that the fund is well managed and that the investor's yields will be greater than those on no-load funds.

Accepted Answer

A) True 
 B)False

Question 20

Index funds have provided competitive rates of return because

Accepted Answer

A)  their costs are lower than other stock funds. 
B)  it is difficult to outperform the market. 
C)  they have very low turnover rates. 
D)  they are tax efficient. 
E)  all of the above. 
A)  their costs are lower than other stock funds. 
B)  it is difficult to outperform the market. 
C)  they have very low turnover rates. 
D)  they are tax efficient. 
E)  all of the above.

The current market value of all the securities a mutual fund owns is called the

Having money taken automatically from your paycheck and put into a mutual fund is an example of

The major benefit to small investors of mutual funds is diversification.

Open ended mutual funds can be traded on an intraday basis.

A fund that invests only in a particular industry would be a ____ 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. -One type of [stock | bond] fund provides tax-free income.

What type of REIT is most attractive to income oriented investors?

A no-load fund has no

Mutual funds are governed by the Investment Company Act of 1940.

Mutual funds may be classified by the types of securities they purchase.

Open ended mutual funds typically offer more diversification than an individual security.

A(n)____ actually runs the portfolio and makes the buy and sell decisions

Index funds are actively managed.

Using the information below,at what price per share would you buy these mutual fund shares?

Unit investment trusts have the following characteristics

Load fees charged on mutual funds help insure that the fund is well managed and that the investor's yields will be greater than those on no-load funds.

Index funds have provided competitive rates of return because

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

The current market value of all the securities a mutual fund owns is called the

Having money taken automatically from your paycheck and put into a mutual fund is an example of

The major benefit to small investors of mutual funds is diversification.

Open ended mutual funds can be traded on an intraday basis.

A fund that invests only in a particular industry would be a ____ 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. -One type of [stock | bond] fund provides tax-free income.

What type of REIT is most attractive to income oriented investors?

A no-load fund has no

Mutual funds are governed by the Investment Company Act of 1940.

Mutual funds may be classified by the types of securities they purchase.

Open ended mutual funds typically offer more diversification than an individual security.

A(n)____ actually runs the portfolio and makes the buy and sell decisions

Index funds are actively managed.

Using the information below,at what price per share would you buy these mutual fund shares?

Unit investment trusts have the following characteristics

Load fees charged on mutual funds help insure that the fund is well managed and that the investor's yields will be greater than those on no-load funds.

Index funds have provided competitive rates of return because

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