Question 1

Exchange-traded funds have characteristics of both closed-end and open-end funds.

Accepted Answer

A) True 
 B)False

Question 2

Value funds typically invest in stocks that do not pay dividends and have a high price/earning ratio.

Accepted Answer

A) True 
 B)False

Question 3

A real estate investment trust that invests only in mortgages is called an equity trust.

Accepted Answer

A) True 
 B)False

Question 4

A closed-end investment company can create an unlimited number of shares.

Accepted Answer

A) True 
 B)False

Question 5

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 can lose money in a mutual fund because of [fraud of the management company | a downturn in the market].

Accepted Answer

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

Question 6

To be a true no-load fund,there can be a maximum ____ load and a maximum ____ 12(b)-1 fee.

Accepted Answer

A)  0%;0.00% 
B)  0%;0.25% 
C)  0%;1.00% 
D)  3%;0.25% 
E)  3%;1.00% 
A)  0%;0.00% 
B)  0%;0.25% 
C)  0%;1.00% 
D)  3%;0.25% 
E)  3%;1.00%

Question 7

Indexed funds have high realized capital gains.

Accepted Answer

A) True 
 B)False

Question 8

Phone switching is only allowed among funds in a fund family.

Accepted Answer

A) True 
 B)False

Question 9

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 value of your shares in a closed-end fund is determined by [the fund's NAV | supply and demand factors].

Accepted Answer

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

Question 10

Socially Responsible Funds typically avoid investing in

Accepted Answer

A)  Environmentally sound companies 
B)  Alcohol and Tobacco stocks 
C)  Car companies that do not promote safety 
D)  Fast food chains that sell meat 
E)  All of the above 
A)  Environmentally sound companies 
B)  Alcohol and Tobacco stocks 
C)  Car companies that do not promote safety 
D)  Fast food chains that sell meat 
E)  All of the above

Question 11

Sector funds may include stocks from different indexes.

Accepted Answer

A) True 
 B)False

Question 12

A guarantee of expected fund's future performance is its past performance.

Accepted Answer

A) True 
 B)False

Question 13

A(n)____ fund invests primarily in a portfolio of common stocks for the income they provide.

Accepted Answer

A)  balanced 
B)  money market 
C)  growth 
D)  sector 
E)  equity-income 
A)  balanced 
B)  money market 
C)  growth 
D)  sector 
E)  equity-income

Question 14

Global mutual funds can invest both in domestic and international stocks.

Accepted Answer

A) True 
 B)False

Question 15

Aggressive growth funds typically buy stocks with high PE ratios and stocks with volatile price fluctuations.

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.
-Exchange-indexed funds are [actively | passively] managed pools of investments.

Accepted Answer

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

Question 17

Exchange traded funds can create new shares to meet demand.

Accepted Answer

A) True 
 B)False

Question 18

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

Accepted Answer

A) True 
 B)False

Question 19

Growth funds are mutual funds designed for short term investing.

Accepted Answer

A) True 
 B)False

Question 20

The price per share of a closed-end investment fund could be lower than its NAV.

Accepted Answer

A) True 
 B)False

Exchange-traded funds have characteristics of both closed-end and open-end funds.

Value funds typically invest in stocks that do not pay dividends and have a high price/earning ratio.

A real estate investment trust that invests only in mortgages is called an equity trust.

A closed-end investment company can create an unlimited number of shares.

To be a true no-load fund,there can be a maximum load and a maximum 12(b)-1 fee.

Indexed funds have high realized capital gains.

Phone switching is only allowed among funds in a fund family.

Socially Responsible Funds typically avoid investing in

Sector funds may include stocks from different indexes.

A guarantee of expected fund's future performance is its past performance.

A(n)____ fund invests primarily in a portfolio of common stocks for the income they provide.

Global mutual funds can invest both in domestic and international stocks.

Aggressive growth funds typically buy stocks with high PE ratios and stocks with volatile price fluctuations.

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. -Exchange-indexed funds are [actively | passively] managed pools of investments.

Exchange traded funds can create new shares to meet demand.

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

Growth funds are mutual funds designed for short term investing.

The price per share of a closed-end investment fund could be lower than its NAV.

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

Exchange-traded funds have characteristics of both closed-end and open-end funds.

Value funds typically invest in stocks that do not pay dividends and have a high price/earning ratio.

A real estate investment trust that invests only in mortgages is called an equity trust.

A closed-end investment company can create an unlimited number of shares.

To be a true no-load fund,there can be a maximum ____ load and a maximum ____ 12(b)-1 fee.

Indexed funds have high realized capital gains.

Phone switching is only allowed among funds in a fund family.

Socially Responsible Funds typically avoid investing in

Sector funds may include stocks from different indexes.

A guarantee of expected fund's future performance is its past performance.

A(n)____ fund invests primarily in a portfolio of common stocks for the income they provide.

Global mutual funds can invest both in domestic and international stocks.

Aggressive growth funds typically buy stocks with high PE ratios and stocks with volatile price fluctuations.

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. -Exchange-indexed funds are [actively | passively] managed pools of investments.

Exchange traded funds can create new shares to meet demand.

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

Growth funds are mutual funds designed for short term investing.

The price per share of a closed-end investment fund could be lower than its NAV.

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

To be a true no-load fund,there can be a maximum load and a maximum 12(b)-1 fee.