Question 1

Which is not a typical investment found in a bond fund?

Accepted Answer

A) Corporate bonds 
B) Aggressive growth stocks 
C) Preferred stock 
D) High-dividend-paying stocks 
A) Corporate bonds 
B) Aggressive growth stocks 
C) Preferred stock 
D) High-dividend-paying stocks B

Question 2

The average expense ratio for managed stock mutual funds is around ____ percent and _____ percent for index funds.

Accepted Answer

A) 2.00; 0.75 
B) 1.26; 0.25 
C) 0.25; 1.26 
D) 0.75; 2.00 
A) 2.00; 0.75 
B) 1.26; 0.25 
C) 0.25; 1.26 
D) 0.75; 2.00 B

Question 3

Current information about mutual funds can be found at (in)

Accepted Answer

A) CNNMoney.com. 
B) BusinessWeek. 
C) The Value Line Mutual Fund Survey. 
D) (all of these) 
A) CNNMoney.com. 
B) BusinessWeek. 
C) The Value Line Mutual Fund Survey. 
D) (all of these) D

Question 4

The best way to ensure that you "beat the market" is to invest in "hot" mutual funds.

Accepted Answer

A) True 
 B)False

Question 5

A fund's expense ratio is the fund's annual expenses that are expressed as a percentage of its assets.

Accepted Answer

A) True 
 B)False

Question 6

Mutual funds 12b-1 fees have the same effect as front-end loads in that they reduce the return received by investors.

Accepted Answer

A) True 
 B)False

Question 7

"Spiders" are a type of

Accepted Answer

A) REIT. 
B) ETF. 
C) UIT. 
D) open-end fund. 
A) REIT. 
B) ETF. 
C) UIT. 
D) open-end fund.

Question 8

Shares in an open-end mutual fund can be liquidated almost immediately simply by communicating with the company via phone,on-line or in writing.

Accepted Answer

A) True 
 B)False

Question 9

The SEC requires each mutual fund to state its investment objectives.

Accepted Answer

A) True 
 B)False

Question 10

A basis point is one hundredth of one percent.

Accepted Answer

A) True 
 B)False

Question 11

Capital gains distributions represent the net gains that a fund realizes on its sale of securities from its portfolio.

Accepted Answer

A) True 
 B)False

Question 12

Which type of investor in mutual funds would be least likely to be concerned about back-end loads?

Accepted Answer

A) someone about to retire who is moving money from their employer-based retirement plan into an IRA they will manage themselves. 
B) the parent of a 15-year old who is investing for the child's college expenses. 
C) young to middle-age workers investing through their employer-based retirement plan. 
D) any investor who plans on selling their recently purchased shares in the next three years. 
A) someone about to retire who is moving money from their employer-based retirement plan into an IRA they will manage themselves. 
B) the parent of a 15-year old who is investing for the child's college expenses. 
C) young to middle-age workers investing through their employer-based retirement plan. 
D) any investor who plans on selling their recently purchased shares in the next three years.

Question 13

A 12b-1 fee is actually a perpetual sales load because it is assessed on the investment,as well as on reinvested dividends,every year forever.

Accepted Answer

A) True 
 B)False

Question 14

A primary goal of a balanced fund is to earn a well-balanced return of income and long-term capital gains.

Accepted Answer

A) True 
 B)False

Question 15

A mutual fund that provides the investor with some income and a good chance for long-term price appreciation has a ____ objective.

Accepted Answer

A) current income 
B) long-term growth 
C) growth and income 
D) current income or long-term growth 
A) current income 
B) long-term growth 
C) growth and income 
D) current income or long-term growth

Question 16

An aggressive-growth fund may employ high-risk investment techniques,such as borrowing money for leverage,short selling,hedging,and options.

Accepted Answer

A) True 
 B)False

Question 17

ETFs act like traditional open-end mutual funds in that they can be bought and sold directly from the mutual fund.

Accepted Answer

A) True 
 B)False

Question 18

Open-end mutual funds

Accepted Answer

A) are sold only through brokers. 
B) make up about 75 percent of all mutual funds. 
C) are sold at their current net asset value. 
D) are sold to other investors on a secondary market. 
A) are sold only through brokers. 
B) make up about 75 percent of all mutual funds. 
C) are sold at their current net asset value. 
D) are sold to other investors on a secondary market.

Question 19

Internet based companies that dispense low-cost customized,computer-generated financial advice include

Accepted Answer

A) CNNMoney.com. 
B) BusinessWeek. 
C) The Value Line Mutual Fund Survey. 
D) Robo advisors. 
A) CNNMoney.com. 
B) BusinessWeek. 
C) The Value Line Mutual Fund Survey. 
D) Robo advisors.

Question 20

The interest and dividends that a mutual fund earns on its investments are paid out to shareholders as capital gains distributions.

Accepted Answer

A) True 
 B)False

Which is not a typical investment found in a bond fund?

The average expense ratio for managed stock mutual funds is around percent and _ percent for index funds.

Current information about mutual funds can be found at (in)

The best way to ensure that you "beat the market" is to invest in "hot" mutual funds.

A fund's expense ratio is the fund's annual expenses that are expressed as a percentage of its assets.

Mutual funds 12b-1 fees have the same effect as front-end loads in that they reduce the return received by investors.

"Spiders" are a type of

Shares in an open-end mutual fund can be liquidated almost immediately simply by communicating with the company via phone,on-line or in writing.

The SEC requires each mutual fund to state its investment objectives.

A basis point is one hundredth of one percent.

Capital gains distributions represent the net gains that a fund realizes on its sale of securities from its portfolio.

Which type of investor in mutual funds would be least likely to be concerned about back-end loads?

A 12b-1 fee is actually a perpetual sales load because it is assessed on the investment,as well as on reinvested dividends,every year forever.

A primary goal of a balanced fund is to earn a well-balanced return of income and long-term capital gains.

A mutual fund that provides the investor with some income and a good chance for long-term price appreciation has a ____ objective.

An aggressive-growth fund may employ high-risk investment techniques,such as borrowing money for leverage,short selling,hedging,and options.

ETFs act like traditional open-end mutual funds in that they can be bought and sold directly from the mutual fund.

Open-end mutual funds

Internet based companies that dispense low-cost customized,computer-generated financial advice include

The interest and dividends that a mutual fund earns on its investments are paid out to shareholders as capital gains distributions.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 15: Mutual Funds and Exchange Traded Funds

Which is not a typical investment found in a bond fund?

The average expense ratio for managed stock mutual funds is around ____ percent and _____ percent for index funds.

Current information about mutual funds can be found at (in)

The best way to ensure that you "beat the market" is to invest in "hot" mutual funds.

A fund's expense ratio is the fund's annual expenses that are expressed as a percentage of its assets.

Mutual funds 12b-1 fees have the same effect as front-end loads in that they reduce the return received by investors.

"Spiders" are a type of

Shares in an open-end mutual fund can be liquidated almost immediately simply by communicating with the company via phone,on-line or in writing.

The SEC requires each mutual fund to state its investment objectives.

A basis point is one hundredth of one percent.

Capital gains distributions represent the net gains that a fund realizes on its sale of securities from its portfolio.

Which type of investor in mutual funds would be least likely to be concerned about back-end loads?

A 12b-1 fee is actually a perpetual sales load because it is assessed on the investment,as well as on reinvested dividends,every year forever.

A primary goal of a balanced fund is to earn a well-balanced return of income and long-term capital gains.

A mutual fund that provides the investor with some income and a good chance for long-term price appreciation has a ____ objective.

An aggressive-growth fund may employ high-risk investment techniques,such as borrowing money for leverage,short selling,hedging,and options.

ETFs act like traditional open-end mutual funds in that they can be bought and sold directly from the mutual fund.

Open-end mutual funds

Internet based companies that dispense low-cost customized,computer-generated financial advice include

The interest and dividends that a mutual fund earns on its investments are paid out to shareholders as capital gains distributions.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

The average expense ratio for managed stock mutual funds is around percent and _ percent for index funds.