Exam 5: Financial Services: Mutual Funds and Hedge Funds

Match the following pieces of legislation with the function achieved by each regulation as stated in question -Sets rules to prevent conflicts of interest, fraud, and excessive fees or charges for fund shares.

Long-term mutual funds invest primarily in long-term, fixed-income securities such as corporate and/or government bonds.

Which of the following is one of the characteristics of household mutual fund owners as of 2012?

The hedge fund industry is built on the theory that

Match the following pieces of legislation with the function achieved by each regulation as stated in question -Makes the purchase and sale of mutual fund shares subject to various antifraud provisions.

A change from commercial bank deposits to money market mutual funds typically allows an investor to benefit from higher yields, but with the cost of losing deposit insurance coverage.

Match the following pieces of legislation with the function achieved by each regulation as stated in question -Requires mutual funds to develop mechanisms and procedures to avoid insider trading abuses.

Mutual funds are financial intermediaries that invest in diversified portfolios of assets.

The Securities Act of 1933 requires that a mutual fund furnish full and accurate information on all financial and corporate matters to prospective fund purchasers.

These "more risky" hedge funds aim to profit from changes in global economies, typically brought about by shifts in government policy that impact interest rates.

The largest asset category of mutual funds as of 2012 was

Match the following pieces of legislation with the function achieved by each regulation as stated in question -Exempts mutual fund sellers from oversight by state securities regulators.