Question 1

Conversion privileges allow investors to exchange one fund's shares for that of another,as long as the funds are in the same fund family.

Accepted Answer

A) True 
 B)False

Question 2

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 fund that invests only in utility stocks could be classified as [an industry | a sector] fund.

Accepted Answer

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

Question 3

The following mutual fund fees are paid directly from the investor

Accepted Answer

A)  Other and administrative expenses 
B)  Fund manager profits 
C)  Annual Account Maintenance Fee 
D)  Management Fee 
E)  12b-1 Fee 
A)  Other and administrative expenses 
B)  Fund manager profits 
C)  Annual Account Maintenance Fee 
D)  Management Fee 
E)  12b-1 Fee

Question 4

Mutual fund performance is usually evaluated by viewing a given size investment for a certain time period.

Accepted Answer

A) True 
 B)False

Question 5

A fund custodian keeps shareholder records.

Accepted Answer

A) True 
 B)False

Question 6

There are more closed-end investment companies than there are open-end companies.

Accepted Answer

A) True 
 B)False

Question 7

The objective of bond and money market funds is growth.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following are characteristic of exchange-traded mutual funds?

Accepted Answer

A)  traded on listed exchanges 
B)  closed-end funds 
C)  generally organized as sector funds 
D)  actively managed funds 
E)  all of the above 
A)  traded on listed exchanges 
B)  closed-end funds 
C)  generally organized as sector funds 
D)  actively managed funds 
E)  all of the above

Question 9

An open-end investment company is commonly known as a mutual fund.

Accepted Answer

A) True 
 B)False

Question 10

Mutual fund conversion privileges can often be exercised using 800 numbers.

Accepted Answer

A) True 
 B)False

Question 11

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 actual ownership of a mutual fund is in the hands of the [management company | shareholders].

Accepted Answer

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

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.
-You could drop an automatic investment plan [at any time | only by fulfilling the original agreement].

Accepted Answer

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

Question 13

The author recommends small investors should stick to

Accepted Answer

A)  Speculative investing 
B)  No-load funds 
C)  Front-loaded funds 
D)  Growth stocks 
E)  Value stocks 
A)  Speculative investing 
B)  No-load funds 
C)  Front-loaded funds 
D)  Growth stocks 
E)  Value stocks

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.
-If you choose to have your mutual fund dividends automatically reinvested,you [may defer taxes on the dividends until you redeem some shares | still owe taxes for the year the dividends were earned].

Accepted Answer

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

Question 15

Systematic withdrawal plans offer the investor options as to the liquidation of the fund.

Accepted Answer

A) True 
 B)False

Question 16

If you are a mutual fund investor who needs steady income,you might take advantage of a fund's

Accepted Answer

A)  retirement plans. 
B)  exchange privileges. 
C)  automatic reinvestment plans. 
D)  systematic withdrawal plans. 
E)  none of these. 
A)  retirement plans. 
B)  exchange privileges. 
C)  automatic reinvestment plans. 
D)  systematic withdrawal plans. 
E)  none of these.

Question 17

Investors tend to use mutual funds for which of the following reasons

Accepted Answer

A)  Diversification 
B)  Professional Management 
C)  Financial Returns 
D)  convenience 
E)  all of the above 
A)  Diversification 
B)  Professional Management 
C)  Financial Returns 
D)  convenience 
E)  all of the above

Question 18

The price an investor can sell his shares of an open-end mutual fund share is the net asset value.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a source of mutual fund returns

Accepted Answer

A)  dividend income 
B)  capital gains 
C)  changes in NAV 
D)  changes in IDB 
E)  All of the above are sources of mutual fund returns 
A)  dividend income 
B)  capital gains 
C)  changes in NAV 
D)  changes in IDB 
E)  All of the above are sources of mutual fund returns

Question 20

Closed-end mutual funds can trade at either a discount or a premium from their net asset value.

Accepted Answer

A) True 
 B)False

Conversion privileges allow investors to exchange one fund's shares for that of another,as long as the funds are in the same fund family.

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 fund that invests only in utility stocks could be classified as [an industry | a sector] fund.

The following mutual fund fees are paid directly from the investor

Mutual fund performance is usually evaluated by viewing a given size investment for a certain time period.

A fund custodian keeps shareholder records.

There are more closed-end investment companies than there are open-end companies.

The objective of bond and money market funds is growth.

Which of the following are characteristic of exchange-traded mutual funds?

An open-end investment company is commonly known as a mutual fund.

Mutual fund conversion privileges can often be exercised using 800 numbers.

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 actual ownership of a mutual fund is in the hands of the [management company | shareholders].

The author recommends small investors should stick to

Systematic withdrawal plans offer the investor options as to the liquidation of the fund.

If you are a mutual fund investor who needs steady income,you might take advantage of a fund's

Investors tend to use mutual funds for which of the following reasons

The price an investor can sell his shares of an open-end mutual fund share is the net asset value.

Which of the following is not a source of mutual fund returns

Closed-end mutual funds can trade at either a discount or a premium from their net asset value.

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

Conversion privileges allow investors to exchange one fund's shares for that of another,as long as the funds are in the same fund family.

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 fund that invests only in utility stocks could be classified as [an industry | a sector] fund.

The following mutual fund fees are paid directly from the investor

Mutual fund performance is usually evaluated by viewing a given size investment for a certain time period.

A fund custodian keeps shareholder records.

There are more closed-end investment companies than there are open-end companies.

The objective of bond and money market funds is growth.

Which of the following are characteristic of exchange-traded mutual funds?

An open-end investment company is commonly known as a mutual fund.

Mutual fund conversion privileges can often be exercised using 800 numbers.

The author recommends small investors should stick to

Systematic withdrawal plans offer the investor options as to the liquidation of the fund.

If you are a mutual fund investor who needs steady income,you might take advantage of a fund's

Investors tend to use mutual funds for which of the following reasons

The price an investor can sell his shares of an open-end mutual fund share is the net asset value.

Which of the following is not a source of mutual fund returns

Closed-end mutual funds can trade at either a discount or a premium from their net asset value.

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