Question 1

When you sell your shares in a mutual fund,you may receive a profit called

Accepted Answer

A)  Capital gain distribution. 
B)  Income dividend. 
C)  Capital gain. 
D)  Mutual fund money. 
E)  Fund taxes. 
A)  Capital gain distribution. 
B)  Income dividend. 
C)  Capital gain. 
D)  Mutual fund money. 
E)  Fund taxes.

Question 2

Explain the taxability of reinvested income dividends in a mutual fund.

Accepted Answer

Reinvested income dividends ar

Question 3

If you start a new job and are offered the opportunity to participate in the company's 401(k)or 403(b)retirement plan,which of the following decisions can affect your financial future?

Accepted Answer

A)  Participating in the retirement account as a way to reduce income taxes. 
B)  Participating in the retirement account to take advantage of the employer's matching contributions. 
C)  Choosing mutual funds from a number of different fund options for your retirement account. 
D)  Basing your actual choice of investments on your age, how long before you retire, and your tolerance for risk. 
E)  All of these decisions would have a financial impact. 
A)  Participating in the retirement account as a way to reduce income taxes. 
B)  Participating in the retirement account to take advantage of the employer's matching contributions. 
C)  Choosing mutual funds from a number of different fund options for your retirement account. 
D)  Basing your actual choice of investments on your age, how long before you retire, and your tolerance for risk. 
E)  All of these decisions would have a financial impact.

Question 4

Most managed mutual funds outperform the Standard & Poor's 500 stock index.

Accepted Answer

A) True 
 B)False

Question 5

An exchange-traded fund has portfolio managers who actively research and select the stocks and other securities.

Accepted Answer

A) True 
 B)False

Question 6

Sally wants to invest in a fund that invests only in stock.Which of the following will meet her needs?

Accepted Answer

A)  Asset allocation funds 
B)  Balance funds 
C)  Junk bond funds 
D)  Midcap funds 
E)  Short-term corporate bond funds 
A)  Asset allocation funds 
B)  Balance funds 
C)  Junk bond funds 
D)  Midcap funds 
E)  Short-term corporate bond funds

Question 7

The difference between a global stock fund and an international fund is that the global stock fund invests in companies throughout the world,including the United States,whereas the international fund invests outside the United States.

Accepted Answer

A) True 
 B)False

Question 8

A fee charged to defray the costs of advertising and marketing for a mutual fund is called a ____ fee.

Accepted Answer

A)  3c 
B)  12b-1 
C)  14c-2 
D)  401(k) 
E)  403(b) 
A)  3c 
B)  12b-1 
C)  14c-2 
D)  401(k) 
E)  403(b)

Question 9

A contingent deferred sales load is known as all of the following except

Accepted Answer

A)  Back-end load. 
B)  B fund. 
C)  Redemption fee. 
D)  Only two of these are correct. 
E)  All of these are correct. 
A)  Back-end load. 
B)  B fund. 
C)  Redemption fee. 
D)  Only two of these are correct. 
E)  All of these are correct.

Question 10

In 2011,investors in the United States could choose from more than 25,000 mutual funds.

Accepted Answer

A) True 
 B)False

Question 11

What are the two primary reasons that investors purchase mutual funds?

Accepted Answer

The two main reasons

Question 12

Brenda wants to invest in a fund that will outperform most others.On average,she would be better off to invest in an index fund instead of a managed closed-end fund.

Accepted Answer

A) True 
 B)False

Question 13

How do mutual funds provide returns to their shareholders?

Accepted Answer

A)  Income dividends. 
B)  Capital gain distributions. 
C)  Capital gains. 
D)  All of these. 
E)  None of these. 
A)  Income dividends. 
B)  Capital gain distributions. 
C)  Capital gains. 
D)  All of these. 
E)  None of these.

Question 14

Sally wants to invest in a mutual fund.The mutual fund must provide a(n)____ to her.

Accepted Answer

A)  analysis from a financial publication 
B)  annual report 
C)  prospectus 
D)  quarterly report 
E)  summary report 
A)  analysis from a financial publication 
B)  annual report 
C)  prospectus 
D)  quarterly report 
E)  summary report

Question 15

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase.If she must pay a 5% contingent deferred sales fee,what will her total fee be?

Accepted Answer

A)  $0 
B)  $3.50 
C)  $35.00 
D)  $350.00 
E)  $3,500.00 
A)  $0 
B)  $3.50 
C)  $35.00 
D)  $350.00 
E)  $3,500.00

Question 16

Why have lifestyle funds become so popular with investors?

Accepted Answer

Lifestyle,or lifecycle,funds have an ass

Question 17

Which of the following contains a letter from the president of the investment company,detailed financial information,a schedule of investments,and a letter from the fund's independent auditors?

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 18

Which of the following types of stock funds invests in stock issued by companies throughout the world outside the United States?

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 19

The average upfront sales charge for a no-load mutual fund is

Accepted Answer

A)  0%. 
B)  2%. 
C)  3-5%. 
D)  8.5%. 
E)  11.5-14.5%. 
A)  0%. 
B)  2%. 
C)  3-5%. 
D)  8.5%. 
E)  11.5-14.5%.

Question 20

If you want to eliminate all taxes from the sale of shares from your mutual funds,what should you do?

Accepted Answer

You should hold your

When you sell your shares in a mutual fund,you may receive a profit called

Explain the taxability of reinvested income dividends in a mutual fund.

If you start a new job and are offered the opportunity to participate in the company's 401(k)or 403(b)retirement plan,which of the following decisions can affect your financial future?

Most managed mutual funds outperform the Standard & Poor's 500 stock index.

An exchange-traded fund has portfolio managers who actively research and select the stocks and other securities.

Sally wants to invest in a fund that invests only in stock.Which of the following will meet her needs?

The difference between a global stock fund and an international fund is that the global stock fund invests in companies throughout the world,including the United States,whereas the international fund invests outside the United States.

A fee charged to defray the costs of advertising and marketing for a mutual fund is called a ____ fee.

A contingent deferred sales load is known as all of the following except

In 2011,investors in the United States could choose from more than 25,000 mutual funds.

What are the two primary reasons that investors purchase mutual funds?

Brenda wants to invest in a fund that will outperform most others.On average,she would be better off to invest in an index fund instead of a managed closed-end fund.

How do mutual funds provide returns to their shareholders?

Sally wants to invest in a mutual fund.The mutual fund must provide a(n)____ to her.

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase.If she must pay a 5% contingent deferred sales fee,what will her total fee be?

Why have lifestyle funds become so popular with investors?

Which of the following contains a letter from the president of the investment company,detailed financial information,a schedule of investments,and a letter from the fund's independent auditors?

Which of the following types of stock funds invests in stock issued by companies throughout the world outside the United States?

The average upfront sales charge for a no-load mutual fund is

If you want to eliminate all taxes from the sale of shares from your mutual funds,what should you do?

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

When you sell your shares in a mutual fund,you may receive a profit called

Explain the taxability of reinvested income dividends in a mutual fund.

If you start a new job and are offered the opportunity to participate in the company's 401(k)or 403(b)retirement plan,which of the following decisions can affect your financial future?

Most managed mutual funds outperform the Standard & Poor's 500 stock index.

An exchange-traded fund has portfolio managers who actively research and select the stocks and other securities.

Sally wants to invest in a fund that invests only in stock.Which of the following will meet her needs?

The difference between a global stock fund and an international fund is that the global stock fund invests in companies throughout the world,including the United States,whereas the international fund invests outside the United States.

A fee charged to defray the costs of advertising and marketing for a mutual fund is called a ____ fee.

A contingent deferred sales load is known as all of the following except

In 2011,investors in the United States could choose from more than 25,000 mutual funds.

What are the two primary reasons that investors purchase mutual funds?

Brenda wants to invest in a fund that will outperform most others.On average,she would be better off to invest in an index fund instead of a managed closed-end fund.

How do mutual funds provide returns to their shareholders?

Sally wants to invest in a mutual fund.The mutual fund must provide a(n)____ to her.

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase.If she must pay a 5% contingent deferred sales fee,what will her total fee be?

Why have lifestyle funds become so popular with investors?

Which of the following contains a letter from the president of the investment company,detailed financial information,a schedule of investments,and a letter from the fund's independent auditors?

Which of the following types of stock funds invests in stock issued by companies throughout the world outside the United States?

The average upfront sales charge for a no-load mutual fund is

If you want to eliminate all taxes from the sale of shares from your mutual funds,what should you do?

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