Question 1

Most mutual funds are managed funds.

Accepted Answer

A) True 
 B)False

Question 2

Volatility is a mutual fund's tendency to rise and fall in price over a period of time.

Accepted Answer

A) True 
 B)False

Question 3

Mutual funds will accept direct transfers of a portion of a worker's paycheck towards the purchase of shares in the mutual fund.

Accepted Answer

A) True 
 B)False

Question 4

Bond funds are always low-risk investments.

Accepted Answer

A) True 
 B)False

Question 5

Individuals trade open-end fund shares on an organized exchange.

Accepted Answer

A) True 
 B)False

Question 6

Emerging market funds are volatile because the countries the stocks are in tend to be less stable politically.

Accepted Answer

A) True 
 B)False

Question 7

A mutual fund that has an income objective as its primary focus aims to earn regular income in dividends or interest from the investments in its portfolio.

Accepted Answer

A) True 
 B)False

Question 8

The SEC requires that a mutual fund's profile prospectus include an estimate of the future rate of return for the fund.

Accepted Answer

A) True 
 B)False

Question 9

Of the following types of stock funds,____ funds tend to be the least risky.

Accepted Answer

A) aggressive-growth 
B) growth 
C) growth and income 
D) sector 
A) aggressive-growth 
B) growth 
C) growth and income 
D) sector

Question 10

A standardized expense table must be included in the front portion of a mutual fund's

Accepted Answer

A) advertising. 
B) full prospectus. 
C) web page. 
D) annual prospectus. 
A) advertising. 
B) full prospectus. 
C) web page. 
D) annual prospectus.

Question 11

A money market fund will have an income rather than growth objective.

Accepted Answer

A) True 
 B)False

Question 12

More than 90 percent of all mutual funds are open-end funds.

Accepted Answer

A) True 
 B)False

Question 13

Mutual funds are readily available to people saving for retirement through 401(k) plans and IRAs.

Accepted Answer

A) True 
 B)False

Question 14

Mutual fund investors expect to profit from their investments through the receipt of mutual fund dividends and

Accepted Answer

A) interest income. 
B) rent income. 
C) price appreciation resulting in a capital gain when the shares are sold back to the fund. 
D) (all of these) 
A) interest income. 
B) rent income. 
C) price appreciation resulting in a capital gain when the shares are sold back to the fund. 
D) (all of these)

Question 15

A global fund invests in growth stocks of companies listed on foreign exchanges as well as in the United States.

Accepted Answer

A) True 
 B)False

Question 16

A trailing commission is compensation paid to salespersons for months or years in the future.

Accepted Answer

A) True 
 B)False

Question 17

No-load mutual funds are appropriate for investors who want to buy investments through a broker or financial planner.

Accepted Answer

A) True 
 B)False

Question 18

A mutual fund whose objective focuses on growth in the value of the securities invests in companies expected to show average or better growth with steady or rising dividends.

Accepted Answer

A) True 
 B)False

Question 19

Your first task in selecting a mutual fund is to

Accepted Answer

A) review your investment policy. 
B) eliminate funds inappropriate for your investment goals. 
C) locate sources of comparative performance data. 
D) screen and compare funds that meet your investment criteria. 
A) review your investment policy. 
B) eliminate funds inappropriate for your investment goals. 
C) locate sources of comparative performance data. 
D) screen and compare funds that meet your investment criteria.

Question 20

The typical growth fund seeks short-term capital appreciation.

Accepted Answer

A) True 
 B)False

Most mutual funds are managed funds.

Volatility is a mutual fund's tendency to rise and fall in price over a period of time.

Mutual funds will accept direct transfers of a portion of a worker's paycheck towards the purchase of shares in the mutual fund.

Bond funds are always low-risk investments.

Individuals trade open-end fund shares on an organized exchange.

Emerging market funds are volatile because the countries the stocks are in tend to be less stable politically.

A mutual fund that has an income objective as its primary focus aims to earn regular income in dividends or interest from the investments in its portfolio.

The SEC requires that a mutual fund's profile prospectus include an estimate of the future rate of return for the fund.

Of the following types of stock funds,____ funds tend to be the least risky.

A standardized expense table must be included in the front portion of a mutual fund's

A money market fund will have an income rather than growth objective.

More than 90 percent of all mutual funds are open-end funds.

Mutual funds are readily available to people saving for retirement through 401(k) plans and IRAs.

Mutual fund investors expect to profit from their investments through the receipt of mutual fund dividends and

A global fund invests in growth stocks of companies listed on foreign exchanges as well as in the United States.

A trailing commission is compensation paid to salespersons for months or years in the future.

No-load mutual funds are appropriate for investors who want to buy investments through a broker or financial planner.

A mutual fund whose objective focuses on growth in the value of the securities invests in companies expected to show average or better growth with steady or rising dividends.

Your first task in selecting a mutual fund is to

The typical growth fund seeks short-term capital appreciation.

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

Most mutual funds are managed funds.

Volatility is a mutual fund's tendency to rise and fall in price over a period of time.

Mutual funds will accept direct transfers of a portion of a worker's paycheck towards the purchase of shares in the mutual fund.

Bond funds are always low-risk investments.

Individuals trade open-end fund shares on an organized exchange.

Emerging market funds are volatile because the countries the stocks are in tend to be less stable politically.

A mutual fund that has an income objective as its primary focus aims to earn regular income in dividends or interest from the investments in its portfolio.

The SEC requires that a mutual fund's profile prospectus include an estimate of the future rate of return for the fund.

Of the following types of stock funds,____ funds tend to be the least risky.

A standardized expense table must be included in the front portion of a mutual fund's

A money market fund will have an income rather than growth objective.

More than 90 percent of all mutual funds are open-end funds.

Mutual funds are readily available to people saving for retirement through 401(k) plans and IRAs.

Mutual fund investors expect to profit from their investments through the receipt of mutual fund dividends and

A global fund invests in growth stocks of companies listed on foreign exchanges as well as in the United States.

A trailing commission is compensation paid to salespersons for months or years in the future.

No-load mutual funds are appropriate for investors who want to buy investments through a broker or financial planner.

A mutual fund whose objective focuses on growth in the value of the securities invests in companies expected to show average or better growth with steady or rising dividends.

Your first task in selecting a mutual fund is to

The typical growth fund seeks short-term capital appreciation.

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