Question 1

What is the most common reason given by American mutual fund owners for investing in funds?

Accepted Answer

A) To reduce taxable income 
B) Saving for someone's education 
C) Saving for emergencies 
D) Saving for retirement 
E) Saving for a new car 
A) To reduce taxable income 
B) Saving for someone's education 
C) Saving for emergencies 
D) Saving for retirement 
E) Saving for a new car

Question 2

Asset allocation funds invest in various asset classes including stocks,bonds,fixed-income securities,and money market instruments.

Accepted Answer

A) True 
 B)False

Question 3

A mutual fund that only invests in companies outside the United States is called a ____________ fund.

Accepted Answer

A) growth-income 
B) income 
C) international 
D) industry 
E) global 
A) growth-income 
B) income 
C) international 
D) industry 
E) global

Question 4

Which of the following is a disadvantage associated with purchasing a mutual fund?

Accepted Answer

A) Difficulty of buying and selling shares 
B) Aggressive or unethical sales personnel 
C) Only one withdrawal option 
D) No distribution of income and capital gains 
E) Professional management 
A) Difficulty of buying and selling shares 
B) Aggressive or unethical sales personnel 
C) Only one withdrawal option 
D) No distribution of income and capital gains 
E) Professional management

Question 5

Many investors will access a fund's_____ by using the Internet.It includes a letter from the fund's independent auditors that provides an opinion as to the accuracy of the fund's financial statements.

Accepted Answer

A) annual report. 
B) 12b 
C) annual prospectus. 
D) annual summary report from the president of the investment company. 
E) copy of the annual mutual funds report containing a summary of the professional advisory services comments. 
A) annual report. 
B) 12b 
C) annual prospectus. 
D) annual summary report from the president of the investment company. 
E) copy of the annual mutual funds report containing a summary of the professional advisory services comments.

Question 6

The Capitalist Mutual Fund's portfolio is valued at $45 million.The fund has liabilities of $3 million,and the investment company sponsoring the fund has issued 1,600,000 shares.What is the fund's net asset value?

Accepted Answer

A) $100.00 
B) $26.25 
C) $52.50 
D) $3.75 
E) $1.00 
A) $100.00 
B) $26.25 
C) $52.50 
D) $3.75 
E) $1.00

Question 7

Bob Newsome purchased 250 shares of the Northern Lights Growth Fund.The purchase cost was $30 per share and the total commission was $225.What is the load being charged by the fund?

Accepted Answer

A) 2 percent 
B) 3 percent 
C) 4 percent 
D) 5 percent 
E) 8.5 percent 
A) 2 percent 
B) 3 percent 
C) 4 percent 
D) 5 percent 
E) 8.5 percent

Question 8

A mutual fund that requires investors to make regular purchases over a specified period of time is called a:

Accepted Answer

A) regular account. 
B) voluntary savings plan. 
C) contractual savings plan. 
D) minimum withdrawal plan. 
E) free contract plan. 
A) regular account. 
B) voluntary savings plan. 
C) contractual savings plan. 
D) minimum withdrawal plan. 
E) free contract plan.

Question 9

The value of a mutual fund's portfolio minus the mutual fund's liabilities,equals a figure that when divided by the number of shares outstanding,gives you the:

Accepted Answer

A) book value. 
B) outstanding balance. 
C) LIBOR rate. 
D) net asset value. 
E) accounting value. 
A) book value. 
B) outstanding balance. 
C) LIBOR rate. 
D) net asset value. 
E) accounting value.

Question 10

Your parents are considering the purchase of shares in a mutual fund.Discuss three advantages and three that you believe are important for potential investors to consider.

Accepted Answer

Students may choose from the following a

Question 11

Which one of the following statements is false?

Accepted Answer

A) The responsibility for choosing the right mutual fund rests with the individual investor. 
B) Professional fund managers do make mistakes. 
C) Investors should evaluate their investments on a regular basis. 
D) There is no need to evaluate mutual fund investments, because investment companies hire the best professional managers they can to manage their funds. 
E) Individual investors should be involved in choosing a mutual fund, because they know how the objectives of a mutual fund match their own investment objectives. 
A) The responsibility for choosing the right mutual fund rests with the individual investor. 
B) Professional fund managers do make mistakes. 
C) Investors should evaluate their investments on a regular basis. 
D) There is no need to evaluate mutual fund investments, because investment companies hire the best professional managers they can to manage their funds. 
E) Individual investors should be involved in choosing a mutual fund, because they know how the objectives of a mutual fund match their own investment objectives.

Question 12

Mutual funds that invest in smaller,lesser-known companies that offer higher growth potential are referred to as sector funds.

Accepted Answer

A) True 
 B)False

Question 13

Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

Accepted Answer

Purchase Options: To purchase shares in

Question 14

Which type of mutual fund invests in high-yield,high-risk corporate bonds?

Accepted Answer

A) Junk-bond fund 
B) Intermediate corporate bond fund 
C) Municipal bond fund 
D) Short-term government bond fund 
E) World bond fund 
A) Junk-bond fund 
B) Intermediate corporate bond fund 
C) Municipal bond fund 
D) Short-term government bond fund 
E) World bond fund

Question 15

In late 2014,there were over 11,000 mutual funds.

Accepted Answer

A) True 
 B)False

Question 16

All information related to management fees,contingent deferred sales fees,12b-1 fees,and other expenses are contained in a mutual fund's prospectus

Accepted Answer

A) True 
 B)False

Question 17

A(n)_____ fund is a fund that generally invests in the stocks or other securities contained in a specific stock or securities index.

Accepted Answer

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

Question 18

Which of the following is true?

Accepted Answer

A) About 90 million individual Americans own mutual funds. 
B) Nearly forty-five percent of all U.S.households own mutual funds. 
C) There are more than 11,000 mutual funds available. 
D) By the end of 2014, the combined value of assets held by mutual funds totaled 18 trillion dollars. 
E) All of these statements are true. 
A) About 90 million individual Americans own mutual funds. 
B) Nearly forty-five percent of all U.S.households own mutual funds. 
C) There are more than 11,000 mutual funds available. 
D) By the end of 2014, the combined value of assets held by mutual funds totaled 18 trillion dollars. 
E) All of these statements are true.

Question 19

Explain the difference between a load fund and a no-load fund.From a performance standpoint,is there a significant difference between mutual funds that charge commissions and those that do not?

Accepted Answer

A load fund is a mutual fund in which in

Question 20

If you need your money in a short period of time,you should consider conservative investments with less risk.

Accepted Answer

A) True 
 B)False

What is the most common reason given by American mutual fund owners for investing in funds?

Asset allocation funds invest in various asset classes including stocks,bonds,fixed-income securities,and money market instruments.

A mutual fund that only invests in companies outside the United States is called a ____________ fund.

Which of the following is a disadvantage associated with purchasing a mutual fund?

Many investors will access a fund's_____ by using the Internet.It includes a letter from the fund's independent auditors that provides an opinion as to the accuracy of the fund's financial statements.

The Capitalist Mutual Fund's portfolio is valued at $45 million.The fund has liabilities of $3 million,and the investment company sponsoring the fund has issued 1,600,000 shares.What is the fund's net asset value?

Bob Newsome purchased 250 shares of the Northern Lights Growth Fund.The purchase cost was $30 per share and the total commission was $225.What is the load being charged by the fund?

A mutual fund that requires investors to make regular purchases over a specified period of time is called a:

The value of a mutual fund's portfolio minus the mutual fund's liabilities,equals a figure that when divided by the number of shares outstanding,gives you the:

Your parents are considering the purchase of shares in a mutual fund.Discuss three advantages and three that you believe are important for potential investors to consider.

Which one of the following statements is false?

Mutual funds that invest in smaller,lesser-known companies that offer higher growth potential are referred to as sector funds.

Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

Which type of mutual fund invests in high-yield,high-risk corporate bonds?

In late 2014,there were over 11,000 mutual funds.

All information related to management fees,contingent deferred sales fees,12b-1 fees,and other expenses are contained in a mutual fund's prospectus

A(n)_____ fund is a fund that generally invests in the stocks or other securities contained in a specific stock or securities index.

Which of the following is true?

Explain the difference between a load fund and a no-load fund.From a performance standpoint,is there a significant difference between mutual funds that charge commissions and those that do not?

If you need your money in a short period of time,you should consider conservative investments with less risk.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 16: Investing in Mutual Funds

What is the most common reason given by American mutual fund owners for investing in funds?

Asset allocation funds invest in various asset classes including stocks,bonds,fixed-income securities,and money market instruments.

A mutual fund that only invests in companies outside the United States is called a ____________ fund.

Which of the following is a disadvantage associated with purchasing a mutual fund?

Many investors will access a fund's_____ by using the Internet.It includes a letter from the fund's independent auditors that provides an opinion as to the accuracy of the fund's financial statements.

The Capitalist Mutual Fund's portfolio is valued at $45 million.The fund has liabilities of $3 million,and the investment company sponsoring the fund has issued 1,600,000 shares.What is the fund's net asset value?

Bob Newsome purchased 250 shares of the Northern Lights Growth Fund.The purchase cost was $30 per share and the total commission was $225.What is the load being charged by the fund?

A mutual fund that requires investors to make regular purchases over a specified period of time is called a:

The value of a mutual fund's portfolio minus the mutual fund's liabilities,equals a figure that when divided by the number of shares outstanding,gives you the:

Your parents are considering the purchase of shares in a mutual fund.Discuss three advantages and three that you believe are important for potential investors to consider.

Which one of the following statements is false?

Mutual funds that invest in smaller,lesser-known companies that offer higher growth potential are referred to as sector funds.

Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

Which type of mutual fund invests in high-yield,high-risk corporate bonds?

In late 2014,there were over 11,000 mutual funds.

All information related to management fees,contingent deferred sales fees,12b-1 fees,and other expenses are contained in a mutual fund's prospectus

A(n)_____ fund is a fund that generally invests in the stocks or other securities contained in a specific stock or securities index.

Which of the following is true?

Explain the difference between a load fund and a no-load fund.From a performance standpoint,is there a significant difference between mutual funds that charge commissions and those that do not?

If you need your money in a short period of time,you should consider conservative investments with less risk.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters