Question 1

Which one of the following is not a withdrawal option for a mutual fund owner,who has a minimum NAV of $5,000?

Accepted Answer

A) Withdrawing a specified,fixed dollar amount each investment period 
B) Liquidating,or "selling off" a certain number of shares each investment period 
C) Withdrawing a fixed percentage of asset growth 
D) Withdrawing all asset growth earned during an investment period 
E) Withdrawing a stated amount and treating it as a short-term loan 
A) Withdrawing a specified,fixed dollar amount each investment period 
B) Liquidating,or "selling off" a certain number of shares each investment period 
C) Withdrawing a fixed percentage of asset growth 
D) Withdrawing all asset growth earned during an investment period 
E) Withdrawing a stated amount and treating it as a short-term loan

Question 2

Which of the following is not true of index funds?

Accepted Answer

A) Sometimes they are called "passive" funds. 
B) They do have managers that simply buy the securities in the index. 
C) They are a low-cost alternative to managed mutual funds. 
D) The S&P 500 index outperforms the majority of funds over many years. 
E) The typical expense ratio for index funds is 0.50 percent or more. 
A) Sometimes they are called "passive" funds. 
B) They do have managers that simply buy the securities in the index. 
C) They are a low-cost alternative to managed mutual funds. 
D) The S&P 500 index outperforms the majority of funds over many years. 
E) The typical expense ratio for index funds is 0.50 percent or more.

Question 3

Explain the difference between a load fund and a no-load fund.From a performance standpoint,is there a significant difference between mutual funds that charge commissions and those that do not?

Accepted Answer

A load fund is a mutual fund in which in

Question 4

A mutual fund that invests in companies expecting higher-than-average revenue and earnings growth is called a(n)________ fund.

Accepted Answer

A) balanced 
B) growth 
C) industry 
D) income 
E) money market 
A) balanced 
B) growth 
C) industry 
D) income 
E) money market

Question 5

A mutual fund that requires investors to make regular purchases over a specified period of time is called a:

Accepted Answer

A) regular account. 
B) voluntary savings plan. 
C) contractual savings plan. 
D) minimum withdrawal plan. 
E) free contract plan. 
A) regular account. 
B) voluntary savings plan. 
C) contractual savings plan. 
D) minimum withdrawal plan. 
E) free contract plan.

Question 6

If the dollar amount of total return on your mutual fund is $165 and the original cost of your investment is $1,200,then what is your percentage of total return?

Accepted Answer

A) 6.88 percent 
B) 7.25 percent 
C) 12.00 percent 
D) 13.75 percent 
E) 16.50 percent 
A) 6.88 percent 
B) 7.25 percent 
C) 12.00 percent 
D) 13.75 percent 
E) 16.50 percent

Question 7

An investment company sponsoring a mutual fund must give existing shareholders a prospectus.

Accepted Answer

A) True 
 B)False

Question 8

A closed-end fund is:

Accepted Answer

A) a fund that generally invests only in the stocks or other securities contained in a specific stock or securities index. 
B) has only a certain number of shares available to investors when the fund is organized. 
C) professionally managed so investors need not monitor the performance of the fund. 
D) a fund whose shares are issued and redeemed by the investment company at the request of investors. 
E) one whose shares trade only at end-of-the-day prices. 
A) a fund that generally invests only in the stocks or other securities contained in a specific stock or securities index. 
B) has only a certain number of shares available to investors when the fund is organized. 
C) professionally managed so investors need not monitor the performance of the fund. 
D) a fund whose shares are issued and redeemed by the investment company at the request of investors. 
E) one whose shares trade only at end-of-the-day prices.

Question 9

Norma Rose is buying shares in a mutual fund that invests in foreign stocks sold in securities markets throughout the world,excluding the United States.What type of mutual fund is she buying?

Accepted Answer

A) Aggressive growth fund 
B) Equity income fund 
C) Global stock fund 
D) International fund 
E) Regional fund 
A) Aggressive growth fund 
B) Equity income fund 
C) Global stock fund 
D) International fund 
E) Regional fund

Question 10

Investors 72 years or older are less likely to invest in mutual funds than any other age group.

Accepted Answer

A) True 
 B)False

Question 11

A fee that some investment companies charge for distributing and marketing a mutual fund is called a:

Accepted Answer

A) 14A-1 fee. 
B) 12b-1 fee. 
C) 18-2 fee. 
D) 403 fee. 
E) 401 fee. 
A) 14A-1 fee. 
B) 12b-1 fee. 
C) 18-2 fee. 
D) 403 fee. 
E) 401 fee.

Which one of the following is not a withdrawal option for a mutual fund owner,who has a minimum NAV of $5,000?

Which of the following is not true of index funds?

Explain the difference between a load fund and a no-load fund.From a performance standpoint,is there a significant difference between mutual funds that charge commissions and those that do not?

A mutual fund that invests in companies expecting higher-than-average revenue and earnings growth is called a(n)________ fund.

A mutual fund that requires investors to make regular purchases over a specified period of time is called a:

If the dollar amount of total return on your mutual fund is $165 and the original cost of your investment is $1,200,then what is your percentage of total return?

An investment company sponsoring a mutual fund must give existing shareholders a prospectus.

A closed-end fund is:

Norma Rose is buying shares in a mutual fund that invests in foreign stocks sold in securities markets throughout the world,excluding the United States.What type of mutual fund is she buying?

Investors 72 years or older are less likely to invest in mutual funds than any other age group.

A fee that some investment companies charge for distributing and marketing a mutual fund is called a:

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Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

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Life Insurance

Investing Fundamentals

Investing in Stocks

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Exam 16: Investing in Mutual Funds

Which one of the following is not a withdrawal option for a mutual fund owner,who has a minimum NAV of $5,000?

Which of the following is not true of index funds?

Explain the difference between a load fund and a no-load fund.From a performance standpoint,is there a significant difference between mutual funds that charge commissions and those that do not?

A mutual fund that invests in companies expecting higher-than-average revenue and earnings growth is called a(n)________ fund.

A mutual fund that requires investors to make regular purchases over a specified period of time is called a:

If the dollar amount of total return on your mutual fund is $165 and the original cost of your investment is $1,200,then what is your percentage of total return?

An investment company sponsoring a mutual fund must give existing shareholders a prospectus.

A closed-end fund is:

Norma Rose is buying shares in a mutual fund that invests in foreign stocks sold in securities markets throughout the world,excluding the United States.What type of mutual fund is she buying?

Investors 72 years or older are less likely to invest in mutual funds than any other age group.

A fee that some investment companies charge for distributing and marketing a mutual fund is called a:

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