Question 1

Municipal bond funds have tax advantages over other kinds of mutual funds.

Accepted Answer

A) True 
 B)False

Question 2

Balanced growth and income funds contain both growth stocks and stocks that pay high dividends.

Accepted Answer

A) True 
 B)False

Question 3

Mutual funds that are traded on stock exchanges are called ________.

Accepted Answer

The answer of Mutual funds that are traded on stock...

Question 4

Which of the following is not a true statement about mutual funds?

Accepted Answer

A)  All require a minimum investment. 
B)  All have the same investment goals. 
C)  The calculation of net asset value is the same. 
D)  All have a management expense ratio. 
A)  All require a minimum investment. 
B)  All have the same investment goals. 
C)  The calculation of net asset value is the same. 
D)  All have a management expense ratio.

Question 5

Use the following two columns of items to answer the matching questions below:
-sector funds
A)funds that sell shares to individuals and invest the proceeds in bonds
B)mutual funds that focus on firms that pay a high level of dividends
C)mutual funds that focus on a specific industry
D)mutual funds that contain both growth stocks and stocks that pay dividends
E)mutual funds that focus on stocks that are expected to grow at a very high rate

Accepted Answer

The answer of Use the following two columns of items...

Question 6

Which of the following is not a reason for investing in mutual funds?

Accepted Answer

A)  Small amount of funds needed 
B)  Portfolio manager expertise 
C)  Specific investment goals 
D)  Overly diversified 
A)  Small amount of funds needed 
B)  Portfolio manager expertise 
C)  Specific investment goals 
D)  Overly diversified

Question 7

High yield bond funds have a ________ potential return and ________ risk.

Accepted Answer

A)  high; low 
B)  high; high 
C)  low; high 
D)  low; low 
A)  high; low 
B)  high; high 
C)  low; high 
D)  low; low

Question 8

Mutual funds pool money from investors to purchase portfolios of investments.

Accepted Answer

A) True 
 B)False

Question 9

An open-end mutual fund may do all of the following, except

Accepted Answer

A)  sell shares directly to investors. 
B)  charge a fee to buy, but not sell, shares. 
C)  repurchase shares from investors who want to sell their shares. 
D)  have its shares traded on the New York Stock Exchange. 
A)  sell shares directly to investors. 
B)  charge a fee to buy, but not sell, shares. 
C)  repurchase shares from investors who want to sell their shares. 
D)  have its shares traded on the New York Stock Exchange.

Question 10

Which of the following bond mutual funds has both the highest default risk and the highest interest rate risk?

Accepted Answer

A)  Long-term Treasury 
B)  Short-term Ginnie Mae 
C)  Short-term corporate 
D)  Long-term high-yield 
A)  Long-term Treasury 
B)  Short-term Ginnie Mae 
C)  Short-term corporate 
D)  Long-term high-yield

Question 11

The amount by which a closed-end fund's share price in the secondary market is above the fund's NAV is called the

Accepted Answer

A)  market value. 
B)  premium. 
C)  discount. 
D)  par value. 
A)  market value. 
B)  premium. 
C)  discount. 
D)  par value.

Question 12

Two advantages of investing in mutual funds are diversification and professional management.

Accepted Answer

A) True 
 B)False

Question 13

A small-cap fund focuses on firms that are relatively small and its investment objectives somewhat overlap capital appreciation funds.

Accepted Answer

A) True 
 B)False

Question 14

Lipper indexes indicate the mean return for various types of mutual funds.

Accepted Answer

A) True 
 B)False

Question 15

Long-term Treasury bonds are considered to be the "risk-free" asset in the global financial markets. However, long-term Treasury bond funds still bear significant ________ risk.

Accepted Answer

A)  global comparative 
B)  financial 
C)  interest rate 
D)  deflation 
A)  global comparative 
B)  financial 
C)  interest rate 
D)  deflation

Question 16

You are investing for your retirement 20 years hence. You would be most interested in a fund whose investment objective is focused on

Accepted Answer

A)  long-term growth. 
B)  capital conservation. 
C)  income generation. 
D)  a balance of some growth but mostly high dividends. 
A)  long-term growth. 
B)  capital conservation. 
C)  income generation. 
D)  a balance of some growth but mostly high dividends.

Question 17

Technology funds focus on technology-based firms. Which of the following statements regarding these firms is not true?

Accepted Answer

A)  Many of these firms are relatively young. 
B)  They have a low degree of risk. 
C)  They have potential for high returns. 
D)  They do not have a consistent record of strong performance. 
A)  Many of these firms are relatively young. 
B)  They have a low degree of risk. 
C)  They have potential for high returns. 
D)  They do not have a consistent record of strong performance.

Question 18

Which of the following stock mutual funds focus on medium-size companies that are more established than small-cap firms, but may have less growth potential?

Accepted Answer

A)  Equity income funds 
B)  Sector funds 
C)  Mid-size capitalization funds 
D)  Balanced growth and income funds 
A)  Equity income funds 
B)  Sector funds 
C)  Mid-size capitalization funds 
D)  Balanced growth and income funds

Municipal bond funds have tax advantages over other kinds of mutual funds.

Balanced growth and income funds contain both growth stocks and stocks that pay high dividends.

Mutual funds that are traded on stock exchanges are called ________.

Which of the following is not a true statement about mutual funds?

Which of the following is not a reason for investing in mutual funds?

High yield bond funds have a potential return and risk.

Mutual funds pool money from investors to purchase portfolios of investments.

An open-end mutual fund may do all of the following, except

Which of the following bond mutual funds has both the highest default risk and the highest interest rate risk?

The amount by which a closed-end fund's share price in the secondary market is above the fund's NAV is called the

Two advantages of investing in mutual funds are diversification and professional management.

A small-cap fund focuses on firms that are relatively small and its investment objectives somewhat overlap capital appreciation funds.

Lipper indexes indicate the mean return for various types of mutual funds.

Long-term Treasury bonds are considered to be the "risk-free" asset in the global financial markets. However, long-term Treasury bond funds still bear significant ________ risk.

You are investing for your retirement 20 years hence. You would be most interested in a fund whose investment objective is focused on

Technology funds focus on technology-based firms. Which of the following statements regarding these firms is not true?

Which of the following stock mutual funds focus on medium-size companies that are more established than small-cap firms, but may have less growth potential?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

Exam 17: Investing in Mutual Funds

Municipal bond funds have tax advantages over other kinds of mutual funds.

Balanced growth and income funds contain both growth stocks and stocks that pay high dividends.

Mutual funds that are traded on stock exchanges are called ________.

Which of the following is not a true statement about mutual funds?

Which of the following is not a reason for investing in mutual funds?

High yield bond funds have a ________ potential return and ________ risk.

Mutual funds pool money from investors to purchase portfolios of investments.

An open-end mutual fund may do all of the following, except

Which of the following bond mutual funds has both the highest default risk and the highest interest rate risk?

The amount by which a closed-end fund's share price in the secondary market is above the fund's NAV is called the

Two advantages of investing in mutual funds are diversification and professional management.

A small-cap fund focuses on firms that are relatively small and its investment objectives somewhat overlap capital appreciation funds.

Lipper indexes indicate the mean return for various types of mutual funds.

Long-term Treasury bonds are considered to be the "risk-free" asset in the global financial markets. However, long-term Treasury bond funds still bear significant ________ risk.

You are investing for your retirement 20 years hence. You would be most interested in a fund whose investment objective is focused on

Technology funds focus on technology-based firms. Which of the following statements regarding these firms is not true?

Which of the following stock mutual funds focus on medium-size companies that are more established than small-cap firms, but may have less growth potential?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

High yield bond funds have a potential return and risk.