Question 1

What are seven steps you can take to open an investment account and begin investing in mutual funds?

Accepted Answer

1.Determine your investment goals and pe

Question 2

There are more investment companies that offer exchange-traded funds than there are that offer open-end mutual funds.

Accepted Answer

A) True 
 B)False

Question 3

Nathan Fuller is buying shares in a mutual fund that invests in the same companies as those found in the Standard & Poor's 500.What type of mutual fund is he buying?

Accepted Answer

A) Socially responsible fund 
B) Sector fund 
C) Small cap fund 
D) Index fund 
E) Growth fund 
A) Socially responsible fund 
B) Sector fund 
C) Small cap fund 
D) Index fund 
E) Growth fund

Question 4

Today many investors use firms like ________ to create a financial plan to generate the income needed to satisfy their long-term goals?

Accepted Answer

A) New American Frontiers 
B) NASDAQ 
C) Dow Jones Industrial Average 
D) Morgan Stanley 
E) Standard & Poor's index 
A) New American Frontiers 
B) NASDAQ 
C) Dow Jones Industrial Average 
D) Morgan Stanley 
E) Standard & Poor's index

Question 5

At the beginning of 2018,there were almost 12,000 investment companies sponsoring mutual funds.

Accepted Answer

A) True 
 B)False

Question 6

You are considering the purchase of shares in a mutual fund.Discuss three advantages and three disadvantages of mutual fund investing that you believe are important for potential investors to consider.

Accepted Answer

Answers will vary.
ADVANTAGES OF MUTUAL

Question 7

To purchase shares in an open-end mutual fund from an investment company,you may use four options: regular account transactions,voluntary savings plans,contractual savings plans,and reinvestment plans.

Accepted Answer

A) True 
 B)False

Question 8

An investment company sponsoring a mutual fund must give potential investors a(n):

Accepted Answer

A) 12b 
B) prospectus. 
C) disclosure/evaluation form. 
D) redemption fee sheet. 
E) annual report. 
A) 12b 
B) prospectus. 
C) disclosure/evaluation form. 
D) redemption fee sheet. 
E) annual report.

Question 9

Why do investors purchase mutual funds instead of purchasing stocks,bonds,or other investments on their own?

Accepted Answer

The major reasons investors purchase mut

Question 10

You should consider your tolerance for risk before investing in mutual funds.

Accepted Answer

A) True 
 B)False

Question 11

Which type of mutual fund invests in corporate bonds with maturities in excess of 10 years?

Accepted Answer

A) Junk bond fund 
B) Long-term corporate bond fund 
C) Municipal bond fund 
D) Short-term government bond fund 
E) World bond fund 
A) Junk bond fund 
B) Long-term corporate bond fund 
C) Municipal bond fund 
D) Short-term government bond fund 
E) World bond fund

Question 12

Many investors will access a fund's ________ by using the internet.It includes a letter from the fund's independent auditors that provides an opinion as to the accuracy of the fund's financial statements.

Accepted Answer

A) annual report 
B) 12b 
C) annual prospectus 
D) annual summary report from the president of the investment company 
E) copy of the annual mutual funds report containing a summary of the professional advisory services comments 
A) annual report 
B) 12b 
C) annual prospectus 
D) annual summary report from the president of the investment company 
E) copy of the annual mutual funds report containing a summary of the professional advisory services comments

Question 13

Which of the following is an advantage associated with purchasing a mutual fund?

Accepted Answer

A) No fund management fees 
B) Ability to control the timing of the capital gains distributions 
C) Total elimination of market risk 
D) Switching privileges within the same fund family 
E) Purchase/withdrawal costs 
A) No fund management fees 
B) Ability to control the timing of the capital gains distributions 
C) Total elimination of market risk 
D) Switching privileges within the same fund family 
E) Purchase/withdrawal costs

Question 14

The fund manager is ultimately responsible for a fund's success,because he/she decides when to buy or sell securities in the fund.

Accepted Answer

A) True 
 B)False

Question 15

Mutual funds have been around for a long time and became popular in the U.S.before the Great Depression in 1929.

Accepted Answer

A) True 
 B)False

Question 16

A municipal bond fund:

Accepted Answer

A) is too risky for most investors. 
B) invests in municipal bond mutual funds. 
C) invests in bonds that are backed by the federal government. 
D) is a risk-free investment. 
E) invests solely in Treasury bonds. 
A) is too risky for most investors. 
B) invests in municipal bond mutual funds. 
C) invests in bonds that are backed by the federal government. 
D) is a risk-free investment. 
E) invests solely in Treasury bonds.

Question 17

A mutual fund in which investors pay a commission every time they purchase shares is called a ________ fund.

Accepted Answer

A) closed-end 
B) open-end 
C) load 
D) no-load 
E) convertible 
A) closed-end 
B) open-end 
C) load 
D) no-load 
E) convertible

Question 18

Mutual funds that invest in smaller,lesser-known companies that offer higher growth potential are referred to as sector funds.

Accepted Answer

A) True 
 B)False

Question 19

During 2017,Lincoln Masters received income dividends of $850 and capital gain distributions of $540.Based on this information:

Accepted Answer

A) both amounts must be included as taxable income. 
B) only the dividends are taxable. 
C) only the capital gains are taxable. 
D) both amounts are tax-exempt. 
E) both amounts are taxed at a rate of 5 percent. 
A) both amounts must be included as taxable income. 
B) only the dividends are taxable. 
C) only the capital gains are taxable. 
D) both amounts are tax-exempt. 
E) both amounts are taxed at a rate of 5 percent.

Question 20

When an investor purchases shares in a load fund,the average load charge is between ________ percent.

Accepted Answer

A) 0.5 to 2 
B) 1 and 2 
C) 3 and 5 
D) 4 and 6 
E) 5 and 7 
A) 0.5 to 2 
B) 1 and 2 
C) 3 and 5 
D) 4 and 6 
E) 5 and 7

What are seven steps you can take to open an investment account and begin investing in mutual funds?

There are more investment companies that offer exchange-traded funds than there are that offer open-end mutual funds.

Nathan Fuller is buying shares in a mutual fund that invests in the same companies as those found in the Standard & Poor's 500.What type of mutual fund is he buying?

Today many investors use firms like ________ to create a financial plan to generate the income needed to satisfy their long-term goals?

At the beginning of 2018,there were almost 12,000 investment companies sponsoring mutual funds.

You are considering the purchase of shares in a mutual fund.Discuss three advantages and three disadvantages of mutual fund investing that you believe are important for potential investors to consider.

To purchase shares in an open-end mutual fund from an investment company,you may use four options: regular account transactions,voluntary savings plans,contractual savings plans,and reinvestment plans.

An investment company sponsoring a mutual fund must give potential investors a(n):

Why do investors purchase mutual funds instead of purchasing stocks,bonds,or other investments on their own?

You should consider your tolerance for risk before investing in mutual funds.

Which type of mutual fund invests in corporate bonds with maturities in excess of 10 years?

Many investors will access a fund's ________ by using the internet.It includes a letter from the fund's independent auditors that provides an opinion as to the accuracy of the fund's financial statements.

Which of the following is an advantage associated with purchasing a mutual fund?

The fund manager is ultimately responsible for a fund's success,because he/she decides when to buy or sell securities in the fund.

Mutual funds have been around for a long time and became popular in the U.S.before the Great Depression in 1929.

A municipal bond fund:

A mutual fund in which investors pay a commission every time they purchase shares is called a ________ fund.

Mutual funds that invest in smaller,lesser-known companies that offer higher growth potential are referred to as sector funds.

During 2017,Lincoln Masters received income dividends of $850 and capital gain distributions of $540.Based on this information:

When an investor purchases shares in a load fund,the average load charge is between ________ percent.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 16: Investing in Mutual Funds

What are seven steps you can take to open an investment account and begin investing in mutual funds?

There are more investment companies that offer exchange-traded funds than there are that offer open-end mutual funds.

Nathan Fuller is buying shares in a mutual fund that invests in the same companies as those found in the Standard & Poor's 500.What type of mutual fund is he buying?

Today many investors use firms like ________ to create a financial plan to generate the income needed to satisfy their long-term goals?

At the beginning of 2018,there were almost 12,000 investment companies sponsoring mutual funds.

You are considering the purchase of shares in a mutual fund.Discuss three advantages and three disadvantages of mutual fund investing that you believe are important for potential investors to consider.

To purchase shares in an open-end mutual fund from an investment company,you may use four options: regular account transactions,voluntary savings plans,contractual savings plans,and reinvestment plans.

An investment company sponsoring a mutual fund must give potential investors a(n):

Why do investors purchase mutual funds instead of purchasing stocks,bonds,or other investments on their own?

You should consider your tolerance for risk before investing in mutual funds.

Which type of mutual fund invests in corporate bonds with maturities in excess of 10 years?

Many investors will access a fund's ________ by using the internet.It includes a letter from the fund's independent auditors that provides an opinion as to the accuracy of the fund's financial statements.

Which of the following is an advantage associated with purchasing a mutual fund?

The fund manager is ultimately responsible for a fund's success,because he/she decides when to buy or sell securities in the fund.

Mutual funds have been around for a long time and became popular in the U.S.before the Great Depression in 1929.

A municipal bond fund:

A mutual fund in which investors pay a commission every time they purchase shares is called a ________ fund.

Mutual funds that invest in smaller,lesser-known companies that offer higher growth potential are referred to as sector funds.

During 2017,Lincoln Masters received income dividends of $850 and capital gain distributions of $540.Based on this information:

When an investor purchases shares in a load fund,the average load charge is between ________ percent.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters