Question 1

The process of selecting a mutual fund begins with determining whether you want to invest in a load or no-load fund.

Accepted Answer

A) True 
 B)False

Question 2

Redeems is when an investor sells mutual fund shares.

Accepted Answer

A) True 
 B)False

Question 3

The mutual fund company owns the investments it makes,and the mutual fund investors own the mutual fund company.

Accepted Answer

A) True 
 B)False

Question 4

Closed-end mutual fund shares are actively traded like common stocks and bonds,primarily on the New York Stock Exchange.

Accepted Answer

A) True 
 B)False

Question 5

The annual report describes the mutual fund,its investment objectives,and how it tries to achieve its objectives.

Accepted Answer

A) True 
 B)False

Question 6

The longer the time period,the greater the negative impact of front-end loads on the total return for the mutual fund investor.

Accepted Answer

A) True 
 B)False

Question 7

Electronic funds transfers (EFTs) can be used to make regular investments in mutual funds from a checking or savings account.

Accepted Answer

A) True 
 B)False

Question 8

No-load funds may have "service fees" of 0.25 percent or less.

Accepted Answer

A) True 
 B)False

Question 9

The ultimate authority of a fund's track record is its current profile prospectus.

Accepted Answer

A) True 
 B)False

Question 10

A switching privileges on mutual funds allows shareholders to exchange shares of one mutual fund for shares of

Accepted Answer

A) common stock. 
B) any mutual fund sold in the United States. 
C) any mutual fund in the same family of funds. 
D) bonds. 
A) common stock. 
B) any mutual fund sold in the United States. 
C) any mutual fund in the same family of funds. 
D) bonds.

Question 11

A key figure to look for in assessing a mutual funds fees is the expense ratio found in the standardized expense table in the prospectus.

Accepted Answer

A) True 
 B)False

Question 12

A mutual fund buys and sells its shares at NAV,plus or minus any sales charges or fees.

Accepted Answer

A) True 
 B)False

Question 13

Laura invested $4,000 in a mutual fund with a stated load of 6 percent.How much of her money was actually invested in shares of the mutual fund?

Accepted Answer

A) $4,000 
B) $3,940 
C) $3,670 
D) $3,760 
A) $4,000 
B) $3,940 
C) $3,670 
D) $3,760

Question 14

_____________ funds offer investors premixed portfolios of stocks,bonds,and cash that investors of a certain age and risk tolerance might prefer.

Accepted Answer

A) Target-date retirement 
B) Sector 
C) Socially responsible 
D) Equity-income 
A) Target-date retirement 
B) Sector 
C) Socially responsible 
D) Equity-income

Question 15

Deferred loads are a set percentage of the value of your portfolio.

Accepted Answer

A) True 
 B)False

Question 16

A group of mutual funds managed by the same investment company is called a

Accepted Answer

A) mutual fund group. 
B) mutual fund family. 
C) sector fund. 
D) unit investment trust. 
A) mutual fund group. 
B) mutual fund family. 
C) sector fund. 
D) unit investment trust.

The process of selecting a mutual fund begins with determining whether you want to invest in a load or no-load fund.

Redeems is when an investor sells mutual fund shares.

The mutual fund company owns the investments it makes,and the mutual fund investors own the mutual fund company.

Closed-end mutual fund shares are actively traded like common stocks and bonds,primarily on the New York Stock Exchange.

The annual report describes the mutual fund,its investment objectives,and how it tries to achieve its objectives.

The longer the time period,the greater the negative impact of front-end loads on the total return for the mutual fund investor.

Electronic funds transfers (EFTs) can be used to make regular investments in mutual funds from a checking or savings account.

No-load funds may have "service fees" of 0.25 percent or less.

The ultimate authority of a fund's track record is its current profile prospectus.

A switching privileges on mutual funds allows shareholders to exchange shares of one mutual fund for shares of

A key figure to look for in assessing a mutual funds fees is the expense ratio found in the standardized expense table in the prospectus.

A mutual fund buys and sells its shares at NAV,plus or minus any sales charges or fees.

Laura invested $4,000 in a mutual fund with a stated load of 6 percent.How much of her money was actually invested in shares of the mutual fund?

_____________ funds offer investors premixed portfolios of stocks,bonds,and cash that investors of a certain age and risk tolerance might prefer.

Deferred loads are a set percentage of the value of your portfolio.

A group of mutual funds managed by the same investment company is called a

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

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Exam 15: Mutual Funds and Exchange Traded Funds

The process of selecting a mutual fund begins with determining whether you want to invest in a load or no-load fund.

Redeems is when an investor sells mutual fund shares.

The mutual fund company owns the investments it makes,and the mutual fund investors own the mutual fund company.

Closed-end mutual fund shares are actively traded like common stocks and bonds,primarily on the New York Stock Exchange.

The annual report describes the mutual fund,its investment objectives,and how it tries to achieve its objectives.

The longer the time period,the greater the negative impact of front-end loads on the total return for the mutual fund investor.

Electronic funds transfers (EFTs) can be used to make regular investments in mutual funds from a checking or savings account.

No-load funds may have "service fees" of 0.25 percent or less.

The ultimate authority of a fund's track record is its current profile prospectus.

A switching privileges on mutual funds allows shareholders to exchange shares of one mutual fund for shares of

A key figure to look for in assessing a mutual funds fees is the expense ratio found in the standardized expense table in the prospectus.

A mutual fund buys and sells its shares at NAV,plus or minus any sales charges or fees.

Laura invested $4,000 in a mutual fund with a stated load of 6 percent.How much of her money was actually invested in shares of the mutual fund?

_____________ funds offer investors premixed portfolios of stocks,bonds,and cash that investors of a certain age and risk tolerance might prefer.

Deferred loads are a set percentage of the value of your portfolio.

A group of mutual funds managed by the same investment company is called a

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