Question 1

What type of fee is an express fixed percentage of the fund's total value

Accepted Answer

A) Load fund 
B) No-load fund 
C) Front-end load 
D) Back-end load 
E) Management fee 
A) Load fund 
B) No-load fund 
C) Front-end load 
D) Back-end load 
E) Management fee

Question 2

What type of fee charged for withdrawals?

Accepted Answer

A) Load fund 
B) No-load fund 
C) Front-end load 
D) Back-end load 
E) Management fee 
A) Load fund 
B) No-load fund 
C) Front-end load 
D) Back-end load 
E) Management fee

Question 3

A closed end fund has a

Accepted Answer

A) Finite size 
B) Infinite size 
C) Fluctuating size 
D) Variable size 
E) Open ended size 
A) Finite size 
B) Infinite size 
C) Fluctuating size 
D) Variable size 
E) Open ended size

Question 4

The commission charge for purchasing shares of a load fund that imposes an up-front commission charge can be as high as 8.5 percent.This fee:

Accepted Answer

A) is sometimes referred to as the sales fee 
B) is paid every time investors buy (front-end load) 
C) is paid every time investors sell (back-end load) 
D) is sometimes referred to as the sales fee and is paid every time investors buy (front-end load) are correct 
E) is sometimes referred to as the sales fee, is paid every time investors buy (front-end load) and is paid every time investors sell (back-end load) are correct 
A) is sometimes referred to as the sales fee 
B) is paid every time investors buy (front-end load) 
C) is paid every time investors sell (back-end load) 
D) is sometimes referred to as the sales fee and is paid every time investors buy (front-end load) are correct 
E) is sometimes referred to as the sales fee, is paid every time investors buy (front-end load) and is paid every time investors sell (back-end load) are correct

Question 5

In order to sell shares in a closed-end fund, an investor must wait until the investment company is ready to repurchase the investor's shares.

Accepted Answer

A) True 
 B)False

Question 6

During 2000, Lianne Majoro received income dividends of $850 and capital gain distributions of $540.The tax consequence is that

Accepted Answer

A) both amounts must be included as taxable income. 
B) only the dividends are taxable. 
C) only the capital gains are taxable. 
D) both amounts are tax exempt. 
E) It is impossible to determine the tax consequences for dividend income and capital gain distributions unless the shares of the mutual fund are sold to another investor. 
A) both amounts must be included as taxable income. 
B) only the dividends are taxable. 
C) only the capital gains are taxable. 
D) both amounts are tax exempt. 
E) It is impossible to determine the tax consequences for dividend income and capital gain distributions unless the shares of the mutual fund are sold to another investor.

Question 7

Because of up front charges, many financial experts and government agencies are critical of

Accepted Answer

A) regular accounts. 
B) voluntary savings plans 
C) contractual savings plans. 
D) minimum withdrawal plans. 
E) free contract plans. 
A) regular accounts. 
B) voluntary savings plans 
C) contractual savings plans. 
D) minimum withdrawal plans. 
E) free contract plans.

Question 8

A mutual fund that invests in the common stocks of companies in the same industry is called a(n) ____________ fund.

Accepted Answer

A) specialty 
B) income 
C) growth-income 
D) small-cap 
E) money market 
A) specialty 
B) income 
C) growth-income 
D) small-cap 
E) money market

Question 9

In a newspaper quotation, the letter "N" means no load.

Accepted Answer

A) True 
 B)False

Question 10

A mutual fund in which shares are issued only when the fund is organized is called a(n) ____________ fund.

Accepted Answer

A) closed-end 
B) open-end 
C) load 
D) no-load 
E) convertible 
A) closed-end 
B) open-end 
C) load 
D) no-load 
E) convertible

Question 11

An affordable way for investors to invest in a diversified basket of securities; constructed to track the components of a market index such as the S&P 500 or the S&P/TSX Composite is with a(n) ____________ fund.

Accepted Answer

A) closed-end 
B) open-end 
C) exchange-traded 
D) index 
E) convertible 
A) closed-end 
B) open-end 
C) exchange-traded 
D) index 
E) convertible

Question 12

The Marginal Mutual Fund's portfolio is valued at $50 million.The fund has liabilities of $10 million, and the investment company sponsoring the fund has issued 2,000,000 shares.What is the fund's net asset value per share?

Accepted Answer

A) $4.00 
B) $5.00 
C) $20.00 
D) $25.00 
E) $1.50 
A) $4.00 
B) $5.00 
C) $20.00 
D) $25.00 
E) $1.50

Question 13

Which of the following statements is false?

Accepted Answer

A) Market timers charge 1 1/2 percent to 3 percent of the dollar value of the funds they manage. 
B) Early research indicates that market timers must be evaluated as a group. 
C) Since market timers offer a relatively new service, it is hard to evaluate long-term performance. 
D) The true test of market timers is the ability to increase the investor's return during good times and keep that return during bad times. 
E) A market timer helps investors decide when to switch from one fund to another. 
A) Market timers charge 1 1/2 percent to 3 percent of the dollar value of the funds they manage. 
B) Early research indicates that market timers must be evaluated as a group. 
C) Since market timers offer a relatively new service, it is hard to evaluate long-term performance. 
D) The true test of market timers is the ability to increase the investor's return during good times and keep that return during bad times. 
E) A market timer helps investors decide when to switch from one fund to another.

Question 14

A mutual fund in which investors pay a commission every time they purchase shares is called a(n) ____________ fund.

Accepted Answer

A) closed-end 
B) open-end 
C) no-load 
D) load 
E) convertible 
A) closed-end 
B) open-end 
C) no-load 
D) load 
E) convertible

Question 15

Because of professional management, there is no need for the individual investor to evaluate a mutual fund investment.

Accepted Answer

A) True 
 B)False

Question 16

The Capitalist Mutual Fund's portfolio is valued at $55 million.The fund has liabilities of $4 million, and the investment company sponsoring the fund has issued 2,400,000 shares.What is the fund's net asset value?

Accepted Answer

A) $100 
B) $21.25 
C) $22.91 
D) $24.58 
E) $1 
A) $100 
B) $21.25 
C) $22.91 
D) $24.58 
E) $1

Question 17

A mutual fund that is eligible for tax credits is referred to as a labour sustenance venture capital corporation.

Accepted Answer

A) True 
 B)False

Question 18

Mutual funds that apportion their investments among common stocks and bonds are referred to as segregated funds.

Accepted Answer

A) True 
 B)False

Question 19

The Jeremiah Wazan Enterprise Mutual Fund's portfolio is valued at $125,000,000.The fund has liabilities of $5,000,000, and the investment company sponsoring the fund has issued 2,000,000 shares.What is the fund's net asset value?

Accepted Answer

A) $125 
B) $58 
C) $50 
D) $25 
E) $60 
A) $125 
B) $58 
C) $50 
D) $25 
E) $60

Question 20

What type of fee has no sales charge?

Accepted Answer

A) Load fund 
B) No-load fund 
C) Front-end load 
D) Back-end load 
E) Management fee 
A) Load fund 
B) No-load fund 
C) Front-end load 
D) Back-end load 
E) Management fee

What type of fee is an express fixed percentage of the fund's total value

What type of fee charged for withdrawals?

A closed end fund has a

The commission charge for purchasing shares of a load fund that imposes an up-front commission charge can be as high as 8.5 percent.This fee:

In order to sell shares in a closed-end fund, an investor must wait until the investment company is ready to repurchase the investor's shares.

During 2000, Lianne Majoro received income dividends of $850 and capital gain distributions of $540.The tax consequence is that

Because of up front charges, many financial experts and government agencies are critical of

A mutual fund that invests in the common stocks of companies in the same industry is called a(n) ____________ fund.

In a newspaper quotation, the letter "N" means no load.

A mutual fund in which shares are issued only when the fund is organized is called a(n) ____________ fund.

An affordable way for investors to invest in a diversified basket of securities; constructed to track the components of a market index such as the S&P 500 or the S&P/TSX Composite is with a(n) ____________ fund.

The Marginal Mutual Fund's portfolio is valued at $50 million.The fund has liabilities of $10 million, and the investment company sponsoring the fund has issued 2,000,000 shares.What is the fund's net asset value per share?

Which of the following statements is false?

A mutual fund in which investors pay a commission every time they purchase shares is called a(n) ____________ fund.

Because of professional management, there is no need for the individual investor to evaluate a mutual fund investment.

The Capitalist Mutual Fund's portfolio is valued at $55 million.The fund has liabilities of $4 million, and the investment company sponsoring the fund has issued 2,400,000 shares.What is the fund's net asset value?

A mutual fund that is eligible for tax credits is referred to as a labour sustenance venture capital corporation.

Mutual funds that apportion their investments among common stocks and bonds are referred to as segregated funds.

The Jeremiah Wazan Enterprise Mutual Fund's portfolio is valued at $125,000,000.The fund has liabilities of $5,000,000, and the investment company sponsoring the fund has issued 2,000,000 shares.What is the fund's net asset value?

What type of fee has no sales charge?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Retirement Planning

Estate Planning

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Exam 13: Investing in Mutual Funds

What type of fee is an express fixed percentage of the fund's total value

What type of fee charged for withdrawals?

A closed end fund has a

The commission charge for purchasing shares of a load fund that imposes an up-front commission charge can be as high as 8.5 percent.This fee:

In order to sell shares in a closed-end fund, an investor must wait until the investment company is ready to repurchase the investor's shares.

During 2000, Lianne Majoro received income dividends of $850 and capital gain distributions of $540.The tax consequence is that

Because of up front charges, many financial experts and government agencies are critical of

A mutual fund that invests in the common stocks of companies in the same industry is called a(n) ____________ fund.

In a newspaper quotation, the letter "N" means no load.

A mutual fund in which shares are issued only when the fund is organized is called a(n) ____________ fund.

An affordable way for investors to invest in a diversified basket of securities; constructed to track the components of a market index such as the S&P 500 or the S&P/TSX Composite is with a(n) ____________ fund.

The Marginal Mutual Fund's portfolio is valued at $50 million.The fund has liabilities of $10 million, and the investment company sponsoring the fund has issued 2,000,000 shares.What is the fund's net asset value per share?

Which of the following statements is false?

A mutual fund in which investors pay a commission every time they purchase shares is called a(n) ____________ fund.

Because of professional management, there is no need for the individual investor to evaluate a mutual fund investment.

The Capitalist Mutual Fund's portfolio is valued at $55 million.The fund has liabilities of $4 million, and the investment company sponsoring the fund has issued 2,400,000 shares.What is the fund's net asset value?

A mutual fund that is eligible for tax credits is referred to as a labour sustenance venture capital corporation.

Mutual funds that apportion their investments among common stocks and bonds are referred to as segregated funds.

The Jeremiah Wazan Enterprise Mutual Fund's portfolio is valued at $125,000,000.The fund has liabilities of $5,000,000, and the investment company sponsoring the fund has issued 2,000,000 shares.What is the fund's net asset value?

What type of fee has no sales charge?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Retirement Planning

Estate Planning

Filters