Question 1

How is the price per share for open-end mutual funds determined?

Accepted Answer

The price per share is the net asset val

Question 2

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 amount will she actually receive?

Accepted Answer

A)  $350 
B)  $6,650 
C)  $7,000 
D)  $7,350 
E)  $7,500 
A)  $350 
B)  $6,650 
C)  $7,000 
D)  $7,350 
E)  $7,500

Question 3

Earnings paid to shareholders that are not related to the sale of securities in the fund's portfolio are 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 4

An aggressive growth fund invests in companies with a long history of paying dividends.

Accepted Answer

A) True 
 B)False

Question 5

Payments to investors related to the sale of securities in the fund's portfolio are

Accepted Answer

A)  Capital gain distributions. 
B)  Income dividends. 
C)  Capital gains. 
D)  Mutual fund money. 
E)  Fund taxes. 
A)  Capital gain distributions. 
B)  Income dividends. 
C)  Capital gains. 
D)  Mutual fund money. 
E)  Fund taxes.

Question 6

Time is an important factor when evaluating a mutual fund for which of the following?

Accepted Answer

A)  The existence of the underlying index. 
B)  The life of the companies in the fund. 
C)  The length of time that the fund manager has been managing the fund. 
D)  The status of the economy. 
E)  None of these. 
A)  The existence of the underlying index. 
B)  The life of the companies in the fund. 
C)  The length of time that the fund manager has been managing the fund. 
D)  The status of the economy. 
E)  None of these.

Question 7

The average load charge for mutual funds 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 8

Which of the following provides a good means of monitoring the value of your mutual fund investments,but not as much information as other sources of information that conduct a more complete evaluation?

Accepted Answer

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

Question 9

A higher turnover ratio for a mutual fund can result in higher tax bills.

Accepted Answer

A) True 
 B)False

Question 10

Most mutual funds are closed-end funds.

Accepted Answer

A) True 
 B)False

Question 11

Which class of shares charges a commission when withdrawals are made during the first five years?

Accepted Answer

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

Question 12

Which of the following is not correct?

Accepted Answer

A)  When evaluating a mutual fund, an important question to ask is this: How long has the present fund manager been managing the fund? 
B)  Over the years, the majority of managed mutual funds have failed to outperform the Standard & Poor's 500 stock index. 
C)  Managed funds may be open-end funds or closed-end funds. 
D)  A benchmark of a good fund manager is the ability to increase share value when the economy is good and retain that value when the economy is bad. 
E)  A managed fund will outperform an index fund only 60% of the time. 
A)  When evaluating a mutual fund, an important question to ask is this: How long has the present fund manager been managing the fund? 
B)  Over the years, the majority of managed mutual funds have failed to outperform the Standard & Poor's 500 stock index. 
C)  Managed funds may be open-end funds or closed-end funds. 
D)  A benchmark of a good fund manager is the ability to increase share value when the economy is good and retain that value when the economy is bad. 
E)  A managed fund will outperform an index fund only 60% of the time.

Question 13

The investments in the Alamo Basics Contingency Fund have a current market value of $800 million.The fund also has liabilities that total $60 million.If this mutual fund has 20 million shares,what is the net asset value per share?

Accepted Answer

A)  $3.00 
B)  $37.00 
C)  $40.00 
D)  $43.00 
E)  $60.00 
A)  $3.00 
B)  $37.00 
C)  $40.00 
D)  $43.00 
E)  $60.00

Question 14

All of the following are valid ways to purchase mutual funds except

Accepted Answer

A)  A regular account transaction. 
B)  A voluntary savings plan. 
C)  A contractual savings plan. 
D)  A reinvestment plan. 
E)  All of the ways listed are valid purchase options. 
A)  A regular account transaction. 
B)  A voluntary savings plan. 
C)  A contractual savings plan. 
D)  A reinvestment plan. 
E)  All of the ways listed are valid purchase options.

Question 15

Professional advisory services provide detailed information about mutual funds.Which of the following is not a professional advisory service?

Accepted Answer

A)  Dun and Moody's. 
B)  Lipper Analytical Services. 
C)  Morningstar, Inc. 
D)  Value Line. 
E)  All of these are professional advisory services that provide information about mutual funds. 
A)  Dun and Moody's. 
B)  Lipper Analytical Services. 
C)  Morningstar, Inc. 
D)  Value Line. 
E)  All of these are professional advisory services that provide information about mutual funds.

Question 16

The return for an intermediate U.S.government bond fund should be higher than for a junk bond fund.

Accepted Answer

A) True 
 B)False

Question 17

Many mutual funds charge a commission every time they are purchased by investors.These are called

Accepted Answer

A)  Load funds. 
B)  Closed-end funds. 
C)  Exchange-traded funds. 
D)  Net asset value funds. 
E)  Open-end funds. 
A)  Load funds. 
B)  Closed-end funds. 
C)  Exchange-traded funds. 
D)  Net asset value funds. 
E)  Open-end funds.

Question 18

If Ryan wants to invest in an index mutual fund,he should not expect his fund to behave differently than the underlying index.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not correct about the 12b-1 fee?

Accepted Answer

A)  It is also known as a distribution fee. 
B)  A no-load fund can charge a 12b-1 fee of up to 0.25% of its assets. 
C)  It is often an ongoing fee that is charged on an annual basis. 
D)  It needs to be disclosed in the annual report but not in the prospectus. 
E)  It is used to defray the costs of advertising and marketing a mutual fund and commissions paid to a broker who sold shares in the mutual fund. 
A)  It is also known as a distribution fee. 
B)  A no-load fund can charge a 12b-1 fee of up to 0.25% of its assets. 
C)  It is often an ongoing fee that is charged on an annual basis. 
D)  It needs to be disclosed in the annual report but not in the prospectus. 
E)  It is used to defray the costs of advertising and marketing a mutual fund and commissions paid to a broker who sold shares in the mutual fund.

Question 20

What percentage of all mutual funds are closed-end funds?

Accepted Answer

A)  6% 
B)  13% 
C)  36% 
D)  85% 
E)  93% 
A)  6% 
B)  13% 
C)  36% 
D)  85% 
E)  93%

How is the price per share for open-end mutual funds determined?

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 amount will she actually receive?

Earnings paid to shareholders that are not related to the sale of securities in the fund's portfolio are called

An aggressive growth fund invests in companies with a long history of paying dividends.

Payments to investors related to the sale of securities in the fund's portfolio are

Time is an important factor when evaluating a mutual fund for which of the following?

The average load charge for mutual funds is

Which of the following provides a good means of monitoring the value of your mutual fund investments,but not as much information as other sources of information that conduct a more complete evaluation?

A higher turnover ratio for a mutual fund can result in higher tax bills.

Most mutual funds are closed-end funds.

Which class of shares charges a commission when withdrawals are made during the first five years?

Which of the following is not correct?

The investments in the Alamo Basics Contingency Fund have a current market value of $800 million.The fund also has liabilities that total $60 million.If this mutual fund has 20 million shares,what is the net asset value per share?

All of the following are valid ways to purchase mutual funds except

Professional advisory services provide detailed information about mutual funds.Which of the following is not a professional advisory service?

The return for an intermediate U.S.government bond fund should be higher than for a junk bond fund.

Many mutual funds charge a commission every time they are purchased by investors.These are called

If Ryan wants to invest in an index mutual fund,he should not expect his fund to behave differently than the underlying index.

Which of the following is not correct about the 12b-1 fee?

What percentage of all mutual funds are closed-end funds?

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

How is the price per share for open-end mutual funds determined?

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 amount will she actually receive?

Earnings paid to shareholders that are not related to the sale of securities in the fund's portfolio are called

An aggressive growth fund invests in companies with a long history of paying dividends.

Payments to investors related to the sale of securities in the fund's portfolio are

Time is an important factor when evaluating a mutual fund for which of the following?

The average load charge for mutual funds is

Which of the following provides a good means of monitoring the value of your mutual fund investments,but not as much information as other sources of information that conduct a more complete evaluation?

A higher turnover ratio for a mutual fund can result in higher tax bills.

Most mutual funds are closed-end funds.

Which class of shares charges a commission when withdrawals are made during the first five years?

Which of the following is not correct?

The investments in the Alamo Basics Contingency Fund have a current market value of $800 million.The fund also has liabilities that total $60 million.If this mutual fund has 20 million shares,what is the net asset value per share?

All of the following are valid ways to purchase mutual funds except

Professional advisory services provide detailed information about mutual funds.Which of the following is not a professional advisory service?

The return for an intermediate U.S.government bond fund should be higher than for a junk bond fund.

Many mutual funds charge a commission every time they are purchased by investors.These are called

If Ryan wants to invest in an index mutual fund,he should not expect his fund to behave differently than the underlying index.

Which of the following is not correct about the 12b-1 fee?

What percentage of all mutual funds are closed-end funds?

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