Question 1

Closed-end mutual funds can trade at either a discount or a premium from their net asset value.

Accepted Answer

A) True 
 B)False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Advantages of exchange traded funds over mutual funds include [narrow | broad] industry selection.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 3

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.

Accepted Answer

@#IMG-DLM& Net asset

Question 4

By definition,all ETF are no-load funds.

Accepted Answer

A) True 
 B)False

Question 5

A no-load fund has no

Accepted Answer

A)  sales charges. 
B)  administrative charges. 
C)  management charges. 
D)  tax charges. 
E)  12(b)-1 fees. 
A)  sales charges. 
B)  administrative charges. 
C)  management charges. 
D)  tax charges. 
E)  12(b)-1 fees.

Question 6

The ____ is a service offered by mutual funds that helps an investor earn compound interest on their investments.

Accepted Answer

A)  retirement plan 
B)  automatic withdrawal plan 
C)  automatic reinvestment plan 
D)  conversion privilege 
E)  automatic investment plan 
A)  retirement plan 
B)  automatic withdrawal plan 
C)  automatic reinvestment plan 
D)  conversion privilege 
E)  automatic investment plan

Question 7

Which of the following are characteristic of exchange-traded mutual funds?

Accepted Answer

A)  traded on listed exchanges 
B)  closed-end funds 
C)  generally organized as sector funds 
D)  actively managed funds 
E)  all of the above 
A)  traded on listed exchanges 
B)  closed-end funds 
C)  generally organized as sector funds 
D)  actively managed funds 
E)  all of the above

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The primary investment objective of bond mutual funds is [growth | income].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 9

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Accepted Answer

A)  investment advisor 
B)  custodian 
C)  transfer agent 
D)  distributor 
E)  money manager 
A)  investment advisor 
B)  custodian 
C)  transfer agent 
D)  distributor 
E)  money manager

Question 10

Sector funds may include stocks from different indexes.

Accepted Answer

A) True 
 B)False

Question 11

It is almost impossible to lose money in a mutual fund as the result of fraud or the mutual fund company's bankruptcy.

Accepted Answer

A) True 
 B)False

Question 12

Loads are transaction charges for mutual funds.

Accepted Answer

A) True 
 B)False

Question 13

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

Accepted Answer

A) True 
 B)False

Question 14

Back-ended load funds offer more liquidity to investors than no-load funds.

Accepted Answer

A) True 
 B)False

Question 15

Mutual funds do not offer

Accepted Answer

A)  automatic reinvestment plans. 
B)  guaranteed performance. 
C)  regular income programs. 
D)  conversion privileges. 
E)  retirement plans. 
A)  automatic reinvestment plans. 
B)  guaranteed performance. 
C)  regular income programs. 
D)  conversion privileges. 
E)  retirement plans.

Question 16

Mutual funds are actually comprised of two or more companies.

Accepted Answer

A) True 
 B)False

Question 17

By using automatic reinvestment plans,dividend and capital gains are used to automatically buy additional shares in the fund.

Accepted Answer

A) True 
 B)False

Question 18

An investor with a small amount of money should stick to using loaded-funds instead of no-load funds.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Mutual funds must value their securities [monthly | daily].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 20

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

Accepted Answer

A) True 
 B)False

Closed-end mutual funds can trade at either a discount or a premium from their net asset value.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Advantages of exchange traded funds over mutual funds include [narrow | broad] industry selection.

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.

By definition,all ETF are no-load funds.

A no-load fund has no

The ____ is a service offered by mutual funds that helps an investor earn compound interest on their investments.

Which of the following are characteristic of exchange-traded mutual funds?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The primary investment objective of bond mutual funds is [growth | income].

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Sector funds may include stocks from different indexes.

It is almost impossible to lose money in a mutual fund as the result of fraud or the mutual fund company's bankruptcy.

Loads are transaction charges for mutual funds.

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

Back-ended load funds offer more liquidity to investors than no-load funds.

Mutual funds do not offer

Mutual funds are actually comprised of two or more companies.

By using automatic reinvestment plans,dividend and capital gains are used to automatically buy additional shares in the fund.

An investor with a small amount of money should stick to using loaded-funds instead of no-load funds.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Mutual funds must value their securities [monthly | daily].

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters

Exam 13: Investing in Mutual Funds

Closed-end mutual funds can trade at either a discount or a premium from their net asset value.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Advantages of exchange traded funds over mutual funds include [narrow | broad] industry selection.

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.

By definition,all ETF are no-load funds.

A no-load fund has no

The ____ is a service offered by mutual funds that helps an investor earn compound interest on their investments.

Which of the following are characteristic of exchange-traded mutual funds?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The primary investment objective of bond mutual funds is [growth | income].

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Sector funds may include stocks from different indexes.

It is almost impossible to lose money in a mutual fund as the result of fraud or the mutual fund company's bankruptcy.

Loads are transaction charges for mutual funds.

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

Back-ended load funds offer more liquidity to investors than no-load funds.

Mutual funds do not offer

Mutual funds are actually comprised of two or more companies.

By using automatic reinvestment plans,dividend and capital gains are used to automatically buy additional shares in the fund.

An investor with a small amount of money should stick to using loaded-funds instead of no-load funds.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Mutual funds must value their securities [monthly | daily].

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters