Question 1

Many people invest in mutual funds through their retirement accounts.

Accepted Answer

A) True 
 B)False  True

Question 2

Compare the returns of managed funds and index funds.

Accepted Answer

Index funds outperform managed funds as often as 50-80% of the time.Two factors account for an index fund's performance.First,index funds are a mirror image of an index.Historically,an index like the Standard and Poor's 500 stock index outperforms most managed funds.Second,index funds have lower expense ratios than managed mutual funds,which can make a significant difference in the value of the investment over a long period.

Question 3

The Anderson Balanced mutual fund charges a sales load of 4.85%.If you invest $15,000,how much must you pay in commissions?

Accepted Answer

A)  $4.85 
B)  $485.00 
C)  $600.00 
D)  $727.50 
E)  $750.00 
A)  $4.85 
B)  $485.00 
C)  $600.00 
D)  $727.50 
E)  $750.00 D

Question 4

Which of the following types of stock funds invests in stock issued by companies expecting higher-than-average revenue and earnings growth?

Accepted Answer

A)  Equity income funds 
B)  Growth funds 
C)  Index funds 
D)  International funds 
E)  Regional funds 
A)  Equity income funds 
B)  Growth funds 
C)  Index funds 
D)  International funds 
E)  Regional funds

Question 5

A newspaper will provide more complete coverage of mutual funds compared to other sources.

Accepted Answer

A) True 
 B)False

Question 6

Mutual funds provide amateur management.

Accepted Answer

A) True 
 B)False

Question 7

Stephanie wants to invest in a mutual fund that invests in companies within the same industry.She should put her money into a regional fund.

Accepted Answer

A) True 
 B)False

Question 8

The Anderson Balanced mutual fund charges a sales load of 4.85%.If you invest $15,000,how much of your investment will actually be used to purchase shares in the fund?

Accepted Answer

A)  $14,250.00 
B)  $14,272.50 
C)  $14,400.00 
D)  $14,485.00 
E)  $15,000.00 
A)  $14,250.00 
B)  $14,272.50 
C)  $14,400.00 
D)  $14,485.00 
E)  $15,000.00

Question 9

What is a mutual fund?

Accepted Answer

A mutual fund is an investment

Question 10

An investment company sponsoring a mutual fund must give potential investors an annual report.

Accepted Answer

A) True 
 B)False

Question 11

A capital gain distribution is the profit that usually results when the investors sell their shares that have increased in value.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following types of stock funds invests in stock issued by companies with a long history of paying dividends?

Accepted Answer

A)  Equity income funds 
B)  Growth funds 
C)  Index funds 
D)  International funds 
E)  Regional funds 
A)  Equity income funds 
B)  Growth funds 
C)  Index funds 
D)  International funds 
E)  Regional funds

Question 13

Many people own mutual funds as part of a 401(k)plan.

Accepted Answer

A) True 
 B)False

Question 14

A load fund is allowed to collect a sales charge (commission)as high as

Accepted Answer

A)  0%. 
B)  2%. 
C)  3-5%. 
D)  8.5%. 
E)  11.5%. 
A)  0%. 
B)  2%. 
C)  3-5%. 
D)  8.5%. 
E)  11.5%.

Question 15

What is a balanced fund?

Accepted Answer

A balanced fund invests in bot

Question 16

Cynthia received an IRS Form 1099DIV.This form is sent at the end of each quarter to specify how much she received in dividends and capital gain distributions.

Accepted Answer

A) True 
 B)False

Question 17

If you hold mutual fund shares in your Roth individual retirement account,the taxes will be

Accepted Answer

A)  Deferred. 
B)  Eliminated. 
C)  Evaluated. 
D)  Payable immediately. 
E)  None of these. 
A)  Deferred. 
B)  Eliminated. 
C)  Evaluated. 
D)  Payable immediately. 
E)  None of these.

Question 18

Which of the following provides some information about mutual funds for free and more detailed information at a cost?

Accepted Answer

A)  Financial publications 
B)  Internet 
C)  Mutual fund annual report 
D)  Newspapers 
E)  Professional advisory services 
A)  Financial publications 
B)  Internet 
C)  Mutual fund annual report 
D)  Newspapers 
E)  Professional advisory services

Question 19

Which of the following types of stock funds invests in stock traded within one specific region of the world?

Accepted Answer

A)  Equity income funds 
B)  Growth funds 
C)  Index funds 
D)  International funds 
E)  Regional funds 
A)  Equity income funds 
B)  Growth funds 
C)  Index funds 
D)  International funds 
E)  Regional funds

Question 20

An "A fund" mutual fund may have a commission as high as 9.5%.

Accepted Answer

A) True 
 B)False

Many people invest in mutual funds through their retirement accounts.

Compare the returns of managed funds and index funds.

The Anderson Balanced mutual fund charges a sales load of 4.85%.If you invest $15,000,how much must you pay in commissions?

Which of the following types of stock funds invests in stock issued by companies expecting higher-than-average revenue and earnings growth?

A newspaper will provide more complete coverage of mutual funds compared to other sources.

Mutual funds provide amateur management.

Stephanie wants to invest in a mutual fund that invests in companies within the same industry.She should put her money into a regional fund.

The Anderson Balanced mutual fund charges a sales load of 4.85%.If you invest $15,000,how much of your investment will actually be used to purchase shares in the fund?

What is a mutual fund?

An investment company sponsoring a mutual fund must give potential investors an annual report.

A capital gain distribution is the profit that usually results when the investors sell their shares that have increased in value.

Which of the following types of stock funds invests in stock issued by companies with a long history of paying dividends?

Many people own mutual funds as part of a 401(k)plan.

A load fund is allowed to collect a sales charge (commission)as high as

What is a balanced fund?

Cynthia received an IRS Form 1099DIV.This form is sent at the end of each quarter to specify how much she received in dividends and capital gain distributions.

If you hold mutual fund shares in your Roth individual retirement account,the taxes will be

Which of the following provides some information about mutual funds for free and more detailed information at a cost?

Which of the following types of stock funds invests in stock traded within one specific region of the world?

An "A fund" mutual fund may have a commission as high as 9.5%.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Starting Early: Retirement and Estate Planning

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Exam 13: Investing in Mutual Funds

Many people invest in mutual funds through their retirement accounts.

Compare the returns of managed funds and index funds.

The Anderson Balanced mutual fund charges a sales load of 4.85%.If you invest $15,000,how much must you pay in commissions?

Which of the following types of stock funds invests in stock issued by companies expecting higher-than-average revenue and earnings growth?

A newspaper will provide more complete coverage of mutual funds compared to other sources.

Mutual funds provide amateur management.

Stephanie wants to invest in a mutual fund that invests in companies within the same industry.She should put her money into a regional fund.

The Anderson Balanced mutual fund charges a sales load of 4.85%.If you invest $15,000,how much of your investment will actually be used to purchase shares in the fund?

What is a mutual fund?

An investment company sponsoring a mutual fund must give potential investors an annual report.

A capital gain distribution is the profit that usually results when the investors sell their shares that have increased in value.

Which of the following types of stock funds invests in stock issued by companies with a long history of paying dividends?

Many people own mutual funds as part of a 401(k)plan.

A load fund is allowed to collect a sales charge (commission)as high as

What is a balanced fund?

Cynthia received an IRS Form 1099DIV.This form is sent at the end of each quarter to specify how much she received in dividends and capital gain distributions.

If you hold mutual fund shares in your Roth individual retirement account,the taxes will be

Which of the following provides some information about mutual funds for free and more detailed information at a cost?

Which of the following types of stock funds invests in stock traded within one specific region of the world?

An "A fund" mutual fund may have a commission as high as 9.5%.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Starting Early: Retirement and Estate Planning

Filters