Question 1

Thomas wants to invest in a fund that invests in stock,bonds,and money market instruments.Which of the following will meet his needs?

Accepted Answer

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

Question 2

Which of the following is a fund that invests in stocks or securities contained in a specific stock or securities index?

Accepted Answer

A)  Closed-end fund 
B)  Exchange-traded fund 
C)  Net asset value fund 
D)  No-load fund 
E)  Open-end fund 
A)  Closed-end fund 
B)  Exchange-traded fund 
C)  Net asset value fund 
D)  No-load fund 
E)  Open-end fund

Question 3

A socially responsible fund invests in companies that produce tobacco,nuclear energy,and weapons in order to influence the boards to change the companies' mission statements.

Accepted Answer

A) True 
 B)False

Question 4

A no-load mutual fund

Accepted Answer

A)  May allow investors to pay a sales charge. 
B)  Charges commission when you buy shares. 
C)  Uses salespeople to sell the funds. 
D)  Is available only via the Internet. 
E)  Can charge a 12b-1 fee of up to 0.25% of its assets. 
A)  May allow investors to pay a sales charge. 
B)  Charges commission when you buy shares. 
C)  Uses salespeople to sell the funds. 
D)  Is available only via the Internet. 
E)  Can charge a 12b-1 fee of up to 0.25% of its assets.

Question 5

What is an ETF?

Accepted Answer

An ETF (exchange-traded fund)is a fund t

Question 6

Which of the following is not a way one can access reliable information about mutual funds on the internet?

Accepted Answer

A)  Find statistical information from the investment company's web page. 
B)  Obtain current market values for mutual funds by using a search engine such as http://finance.yahoo.com. 
C)  Review blogs from amateur investors about their favorite mutual funds. 
D)  Research reports for mutual funds using professional advisory services. 
E)  All of these are reliable sources of information about mutual funds. 
A)  Find statistical information from the investment company's web page. 
B)  Obtain current market values for mutual funds by using a search engine such as http://finance.yahoo.com. 
C)  Review blogs from amateur investors about their favorite mutual funds. 
D)  Research reports for mutual funds using professional advisory services. 
E)  All of these are reliable sources of information about mutual funds.

Question 7

What is the turnover ratio?

Accepted Answer

The turnover ratio measures the percenta

Question 8

Melinda wants to withdraw some money from her mutual fund.Which of the following is not an option available?

Accepted Answer

A)  Write a check 
B)  Sell a certain number of shares each investment period 
C)  Withdraw a fixed percentage of asset growth 
D)  Withdraw all income dividends and capital gain distributions earned each investment period 
E)  Withdraw all principal and leave interest dividends and capital gain distributions in the account 
A)  Write a check 
B)  Sell a certain number of shares each investment period 
C)  Withdraw a fixed percentage of asset growth 
D)  Withdraw all income dividends and capital gain distributions earned each investment period 
E)  Withdraw all principal and leave interest dividends and capital gain distributions in the account

Question 9

Which class of shares does not impose a sales load or contingent deferred sales fee but charges a higher 12b-1 fee than the other classes?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  K 
E)  Q 
A)  A 
B)  B 
C)  C 
D)  K 
E)  Q

Question 10

What is a family of funds,and what are its advantages?

Accepted Answer

A family of funds exists when one invest

Question 11

The only way to get reliable information about mutual funds is to pay a fee for it.

Accepted Answer

A) True 
 B)False

Question 12

Mutual funds carry a "real risk" that they can decrease in value.

Accepted Answer

A) True 
 B)False

Question 13

Open-end mutual funds have managers and closed-end funds do not.

Accepted Answer

A) True 
 B)False

Question 14

For individuals,stocks and bonds are safer choices than mutual funds because money is pooled from many investors for mutual funds.

Accepted Answer

A) True 
 B)False

Question 15

Contrast a load fund and a no-load fund.

Accepted Answer

A load fund is a mutual fund in which in

Question 16

All of the following are advantages of a mutual fund except

Accepted Answer

A)  Diversification. 
B)  Professional management. 
C)  Loads of up to 8.5%. 
D)  Ease of buying and selling shares. 
E)  All of these are advantages. 
A)  Diversification. 
B)  Professional management. 
C)  Loads of up to 8.5%. 
D)  Ease of buying and selling shares. 
E)  All of these are advantages.

Question 17

Which of the following is correct for a closed-end fund?

Accepted Answer

A)  It is not traded on a securities exchange. 
B)  The price of its shares is determined by supply and demand, by the value of stocks in the portfolio, and by investor expectations. 
C)  It is not actively managed by professional fund managers. 
D)  Its price is equal to the net asset value. 
E)  Its load cannot exceed 2%. 
A)  It is not traded on a securities exchange. 
B)  The price of its shares is determined by supply and demand, by the value of stocks in the portfolio, and by investor expectations. 
C)  It is not actively managed by professional fund managers. 
D)  Its price is equal to the net asset value. 
E)  Its load cannot exceed 2%.

Question 18

Which class of shares charges a commission when shares are purchased?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  K 
E)  Q 
A)  A 
B)  B 
C)  C 
D)  K 
E)  Q

Question 19

Describe the investment strategy of a socially responsible fund.

Accepted Answer

A socially responsible fund avoids inves

Question 20

Which type of fund has the prices determined by factors of supply and demand like a stock?

Accepted Answer

A)  Closed-end fund 
B)  SEC government fund 
C)  Net asset value fund 
D)  No-load fund 
E)  Open-end fund 
A)  Closed-end fund 
B)  SEC government fund 
C)  Net asset value fund 
D)  No-load fund 
E)  Open-end fund

Thomas wants to invest in a fund that invests in stock,bonds,and money market instruments.Which of the following will meet his needs?

Which of the following is a fund that invests in stocks or securities contained in a specific stock or securities index?

A socially responsible fund invests in companies that produce tobacco,nuclear energy,and weapons in order to influence the boards to change the companies' mission statements.

A no-load mutual fund

What is an ETF?

Which of the following is not a way one can access reliable information about mutual funds on the internet?

What is the turnover ratio?

Melinda wants to withdraw some money from her mutual fund.Which of the following is not an option available?

Which class of shares does not impose a sales load or contingent deferred sales fee but charges a higher 12b-1 fee than the other classes?

What is a family of funds,and what are its advantages?

The only way to get reliable information about mutual funds is to pay a fee for it.

Mutual funds carry a "real risk" that they can decrease in value.

Open-end mutual funds have managers and closed-end funds do not.

For individuals,stocks and bonds are safer choices than mutual funds because money is pooled from many investors for mutual funds.

Contrast a load fund and a no-load fund.

All of the following are advantages of a mutual fund except

Which of the following is correct for a closed-end fund?

Which class of shares charges a commission when shares are purchased?

Describe the investment strategy of a socially responsible fund.

Which type of fund has the prices determined by factors of supply and demand like a stock?

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

Thomas wants to invest in a fund that invests in stock,bonds,and money market instruments.Which of the following will meet his needs?

Which of the following is a fund that invests in stocks or securities contained in a specific stock or securities index?

A socially responsible fund invests in companies that produce tobacco,nuclear energy,and weapons in order to influence the boards to change the companies' mission statements.

A no-load mutual fund

What is an ETF?

Which of the following is not a way one can access reliable information about mutual funds on the internet?

What is the turnover ratio?

Melinda wants to withdraw some money from her mutual fund.Which of the following is not an option available?

Which class of shares does not impose a sales load or contingent deferred sales fee but charges a higher 12b-1 fee than the other classes?

What is a family of funds,and what are its advantages?

The only way to get reliable information about mutual funds is to pay a fee for it.

Mutual funds carry a "real risk" that they can decrease in value.

Open-end mutual funds have managers and closed-end funds do not.

For individuals,stocks and bonds are safer choices than mutual funds because money is pooled from many investors for mutual funds.

Contrast a load fund and a no-load fund.

All of the following are advantages of a mutual fund except

Which of the following is correct for a closed-end fund?

Which class of shares charges a commission when shares are purchased?

Describe the investment strategy of a socially responsible fund.

Which type of fund has the prices determined by factors of supply and demand like a stock?

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