Question 1

Index funds are bought at beginning-of-day prices.

Accepted Answer

A) True 
 B)False

Question 2

An affordable way for investors to invest in a diversified basket of securities; provides the diversification of an index fund with the flexibility of a stock is with a(n) ____________ fund.

Accepted Answer

A)  closed-end 
B)  open-end 
C)  exchange-traded 
D)  index 
E)  convertible 
A)  closed-end 
B)  open-end 
C)  exchange-traded 
D)  index 
E)  convertible

Question 3

Capital gain distributions are the payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio.

Accepted Answer

A) True 
 B)False

Question 4

The family of funds concept makes it convenient for shareholders to switch their investments among funds as different funds offer more potential.

Accepted Answer

A) True 
 B)False

Question 5

All mutual funds charge a management expense ratio (MER).

Accepted Answer

A) True 
 B)False

Question 6

An individual who helps investors decide when to switch their investment from one fund to another fund is called a(n)

Accepted Answer

A)  financial planner 
B)  fund evaluator. 
C)  opportunity timer. 
D)  market timer. 
E)  fund consultant. 
A)  financial planner 
B)  fund evaluator. 
C)  opportunity timer. 
D)  market timer. 
E)  fund consultant.

Question 7

Another name for a mutual fund that charges a contingent deferred sales load is a(n) ____________ fund.

Accepted Answer

A)  bare bones 
B)  end state 
C)  bare back 
D)  back-end 
E)  pay later 
A)  bare bones 
B)  end state 
C)  bare back 
D)  back-end 
E)  pay later

Question 8

In a newspaper quotation, which of the following letters would indicate if a mutual fund is a no load fund?

Accepted Answer

A)  N 
B)  R 
C)  FR 
D)  B 
E)  It is impossible to tell if a mutual fund is a no load fund by looking in the newspaper. 
A)  N 
B)  R 
C)  FR 
D)  B 
E)  It is impossible to tell if a mutual fund is a no load fund by looking in the newspaper.

Question 9

The least liquid of all the types of mutual funds is __________________

Accepted Answer

A)  a balanced asset allocation fund 
B)  a money market fund 
C)  an equity or common stock fund 
D)  a real estate mutual fund 
E)  an ethical fund 
A)  a balanced asset allocation fund 
B)  a money market fund 
C)  an equity or common stock fund 
D)  a real estate mutual fund 
E)  an ethical fund

Question 10

A mutual fund is:

Accepted Answer

A)  recommended for expert investors only. 
B)  used exclusively for retirement accounts. 
C)  an investment chosen by people who pool their money to buy financial securities 
D)  risk-averse investors. 
E)  a risk-free investment. 
A)  recommended for expert investors only. 
B)  used exclusively for retirement accounts. 
C)  an investment chosen by people who pool their money to buy financial securities 
D)  risk-averse investors. 
E)  a risk-free investment.

Question 11

Anne Lily purchased 260 shares of the New Sage Growth Fund. The net asset value for each share at the time of purchase was $19. If this fund charges a 4.5 percent load, what is the commission amount she will pay the investment company?

Accepted Answer

A)  $19.00 
B)  $222.30 
C)  $500.00 
D)  $1170.00 
E)  No commission is charged 
A)  $19.00 
B)  $222.30 
C)  $500.00 
D)  $1170.00 
E)  No commission is charged

Question 12

A mutual fund in which no sales charge is paid by the individual investor is called a(n) ____________ fund.

Accepted Answer

A)  closed-end 
B)  open-end 
C)  no-load 
D)  unloaded 
E)  net asset value fund 
A)  closed-end 
B)  open-end 
C)  no-load 
D)  unloaded 
E)  net asset value fund

Question 13

A mutual fund that invests almost entirely in common stocks and aims for capital gains is called a(n) ____________ fund.

Accepted Answer

A)  balanced 
B)  growth 
C)  income 
D)  equity 
E)  money market 
A)  balanced 
B)  growth 
C)  income 
D)  equity 
E)  money market

Question 14

The net asset value per mutual fund share is the current market value of the securities contained in the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 15

Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

Accepted Answer

To purchase shares in an open-end mutual

Question 16

Larry Bander purchased 280 shares of the New Horizons Growth Fund. The net asset value for each share at the time of purchase was $27. If this fund charges a 3.5 percent load, what is the commission amount he will pay the investment company?

Accepted Answer

A)  $27.00 
B)  $9.80 
C)  $264.60 
D)  $100 
E)  $280.00 
A)  $27.00 
B)  $9.80 
C)  $264.60 
D)  $100 
E)  $280.00

Question 17

The most popular and least complicated method of purchasing shares in an open-end mutual fund is through a

Accepted Answer

A)  regular account. 
B)  voluntary savings plan. 
C)  contractual savings plan. 
D)  minimum withdrawal plan. 
E)  free contract plan. 
A)  regular account. 
B)  voluntary savings plan. 
C)  contractual savings plan. 
D)  minimum withdrawal plan. 
E)  free contract plan.

Question 18

For most mutual funds, the net asset value is calculated:

Accepted Answer

A)  daily. 
B)  quarterly. 
C)  weekly. 
D)  yearly. 
E)  whenever an investor calls and requests a price quote. 
A)  daily. 
B)  quarterly. 
C)  weekly. 
D)  yearly. 
E)  whenever an investor calls and requests a price quote.

Question 19

Exchange traded funds can be traded at beginning of the day prices.

Accepted Answer

A) True 
 B)False

Question 20

In a newspaper quotation, NAV stands for "not accessible value."

Accepted Answer

A) True 
 B)False

Index funds are bought at beginning-of-day prices.

An affordable way for investors to invest in a diversified basket of securities; provides the diversification of an index fund with the flexibility of a stock is with a(n) ____________ fund.

Capital gain distributions are the payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio.

The family of funds concept makes it convenient for shareholders to switch their investments among funds as different funds offer more potential.

All mutual funds charge a management expense ratio (MER).

An individual who helps investors decide when to switch their investment from one fund to another fund is called a(n)

Another name for a mutual fund that charges a contingent deferred sales load is a(n) ____________ fund.

In a newspaper quotation, which of the following letters would indicate if a mutual fund is a no load fund?

The least liquid of all the types of mutual funds is __________________

A mutual fund is:

Anne Lily purchased 260 shares of the New Sage Growth Fund. The net asset value for each share at the time of purchase was $19. If this fund charges a 4.5 percent load, what is the commission amount she will pay the investment company?

A mutual fund in which no sales charge is paid by the individual investor is called a(n) ____________ fund.

A mutual fund that invests almost entirely in common stocks and aims for capital gains is called a(n) ____________ fund.

The net asset value per mutual fund share is the current market value of the securities contained in the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding.

Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

Larry Bander purchased 280 shares of the New Horizons Growth Fund. The net asset value for each share at the time of purchase was $27. If this fund charges a 3.5 percent load, what is the commission amount he will pay the investment company?

The most popular and least complicated method of purchasing shares in an open-end mutual fund is through a

For most mutual funds, the net asset value is calculated:

Exchange traded funds can be traded at beginning of the day prices.

In a newspaper quotation, NAV stands for "not accessible value."

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Retirement Planning

Estate Planning

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Exam 13: Investing in Mutual Funds

Index funds are bought at beginning-of-day prices.

An affordable way for investors to invest in a diversified basket of securities; provides the diversification of an index fund with the flexibility of a stock is with a(n) ____________ fund.

Capital gain distributions are the payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio.

The family of funds concept makes it convenient for shareholders to switch their investments among funds as different funds offer more potential.

All mutual funds charge a management expense ratio (MER).

An individual who helps investors decide when to switch their investment from one fund to another fund is called a(n)

Another name for a mutual fund that charges a contingent deferred sales load is a(n) ____________ fund.

In a newspaper quotation, which of the following letters would indicate if a mutual fund is a no load fund?

The least liquid of all the types of mutual funds is __________________

A mutual fund is:

Anne Lily purchased 260 shares of the New Sage Growth Fund. The net asset value for each share at the time of purchase was $19. If this fund charges a 4.5 percent load, what is the commission amount she will pay the investment company?

A mutual fund in which no sales charge is paid by the individual investor is called a(n) ____________ fund.

A mutual fund that invests almost entirely in common stocks and aims for capital gains is called a(n) ____________ fund.

The net asset value per mutual fund share is the current market value of the securities contained in the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding.

Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

Larry Bander purchased 280 shares of the New Horizons Growth Fund. The net asset value for each share at the time of purchase was $27. If this fund charges a 3.5 percent load, what is the commission amount he will pay the investment company?

The most popular and least complicated method of purchasing shares in an open-end mutual fund is through a

For most mutual funds, the net asset value is calculated:

Exchange traded funds can be traded at beginning of the day prices.

In a newspaper quotation, NAV stands for "not accessible value."

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Retirement Planning

Estate Planning

Filters