Question 1

Which of the following would be found in a mutual fund's prospectus?

Accepted Answer

A) statement describing the risk factors associated with the fund 
B) description of the fund's past performance 
C) information about the fund's management 
D) the process for buying and selling shares in the fund 
E) all of the information in the other answers 
A) statement describing the risk factors associated with the fund 
B) description of the fund's past performance 
C) information about the fund's management 
D) the process for buying and selling shares in the fund 
E) all of the information in the other answers

Question 2

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

Accepted Answer

A) no fund management fees 
B) ability to control the timing of the capital gains distributions 
C) total elimination of market risk 
D) switching privileges within the same fund family 
E) all of items listed in the other answers 
A) no fund management fees 
B) ability to control the timing of the capital gains distributions 
C) total elimination of market risk 
D) switching privileges within the same fund family 
E) all of items listed in the other answers

Question 3

High-yield bond funds are sometimes referred to as junk bond funds.

Accepted Answer

A) True 
 B)False

Question 4

When you decide to redeem shares in an open-end mutual fund,the only option is to sell a specific number of shares.

Accepted Answer

A) True 
 B)False

Question 5

A fee that some investment companies charge for advertising and marketing a mutual fund is called a:

Accepted Answer

A) 14A-1 fee. 
B) 12b-1 fee. 
C) 18-2 fee. 
D) 403(b)fee. 
E) 401(k)feE. 
A) 14A-1 fee. 
B) 12b-1 fee. 
C) 18-2 fee. 
D) 403(b)fee. 
E) 401(k)feE.

Question 6

When you invest in Class A shares,you pay a sales commission when you sell your mutual fund shares.

Accepted Answer

A) True 
 B)False

Question 7

The management fee for most mutual funds ranges between ______ percent.

Accepted Answer

A) 0.25 to 1.5 
B) 1.5 to 3 
C) 3 to 4 
D) 5 to 6 1/2 
E) 7 to 8 1/2 
A) 0.25 to 1.5 
B) 1.5 to 3 
C) 3 to 4 
D) 5 to 6 1/2 
E) 7 to 8 1/2

Question 8

Typically,you must invest at least $15,000,to open a mutual fund account.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

A mutual fund that only invests in companies outside the United States is called a(n)____________ 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 11

The value of a mutual fund's portfolio minus the mutual fund's liabilities,divided by the number of shares outstanding is called 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 12

Tiffany Scott puts $10,000 into a load mutual fund.She knows that her up-front sales commission is 6%.How much of her money actually goes to buy shares in the mutual fund?

Accepted Answer

A) $10,000 
B) $9,400 
C) $600 
D) $10,600 
E) $950 
A) $10,000 
B) $9,400 
C) $600 
D) $10,600 
E) $950

Question 13

Which of the following options can a mutual fund investor use to purchase shares in an open-end fund?

Accepted Answer

A) regular accounts. 
B) voluntary savings plan. 
C) contractual savings plan. 
D) reinvestment plan. 
E) all of the options listed in the other answers 
A) regular accounts. 
B) voluntary savings plan. 
C) contractual savings plan. 
D) reinvestment plan. 
E) all of the options listed in the other answers

Which of the following would be found in a mutual fund's prospectus?

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

High-yield bond funds are sometimes referred to as junk bond funds.

When you decide to redeem shares in an open-end mutual fund,the only option is to sell a specific number of shares.

A fee that some investment companies charge for advertising and marketing a mutual fund is called a:

When you invest in Class A shares,you pay a sales commission when you sell your mutual fund shares.

The management fee for most mutual funds ranges between ______ percent.

Typically,you must invest at least $15,000,to open a mutual fund account.

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

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

The value of a mutual fund's portfolio minus the mutual fund's liabilities,divided by the number of shares outstanding is called the:

Tiffany Scott puts $10,000 into a load mutual fund.She knows that her up-front sales commission is 6%.How much of her money actually goes to buy shares in the mutual fund?

Which of the following options can a mutual fund investor use to purchase shares in an open-end fund?

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 Stocks

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

Which of the following would be found in a mutual fund's prospectus?

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

High-yield bond funds are sometimes referred to as junk bond funds.

When you decide to redeem shares in an open-end mutual fund,the only option is to sell a specific number of shares.

A fee that some investment companies charge for advertising and marketing a mutual fund is called a:

When you invest in Class A shares,you pay a sales commission when you sell your mutual fund shares.

The management fee for most mutual funds ranges between ______ percent.

Typically,you must invest at least $15,000,to open a mutual fund account.

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

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

The value of a mutual fund's portfolio minus the mutual fund's liabilities,divided by the number of shares outstanding is called the:

Tiffany Scott puts $10,000 into a load mutual fund.She knows that her up-front sales commission is 6%.How much of her money actually goes to buy shares in the mutual fund?

Which of the following options can a mutual fund investor use to purchase shares in an open-end fund?

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 Stocks

Investing in Bonds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters