Exam 13: Investing in Mutual Funds

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].

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. -"Mutual Fund" technically refers to [an open-end | a closed-end] investment company.

The difference between the NAV and the offer price represents the commission charge for buying the mutual fund shares.

Future fund performance is the real key to investment success with mutual funds.One important element to examine when attempting to predict a fund's future performance is the

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. -Value funds are comprised of stocks with [low | high] PE ratios.

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 growth mutual fund invests in stocks that are very likely to [pay | not pay] dividends.

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

The major reason that investors use mutual funds is their contractual plans which force regular investing.

The ____ is a service offered by mutual funds that helps an investor earn compound interest on their investments.

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

Back end loaded mutual funds are most appropriate for

ETFs are set up to protect investors from capital gains taxes better than most mutual funds can.

As of mid-2012 housing prices have shown a significant,consistent upward trend indicating a recovery.

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. -Advantages of exchange traded funds over mutual funds include [lower | higher] expense ratio.

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 [global | international] fund invest exclusively in foreign securities.

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 NAV would indicate the price at which you could buy shares in a [load | no load] mutual fund.

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

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. -Usually the management firm of a mutual fund also serves as the [custodian | investment advisor] of the fund.

Investors select and purchase securities held within mutual funds.

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