Question 1

Socially responsible funds have experienced lower return than other types of funds of similar risk.

Accepted Answer

A) True 
 B)False

Question 2

A mutual fund always provides active professional investment management.

Accepted Answer

A) True 
 B)False

Question 3

Index funds are actively managed.

Accepted Answer

A) True 
 B)False

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The value of your shares in a closed-end fund is determined by [the fund's NAV | supply and demand factors].

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 5

A closed-end investment company that invests in various types of real estate and mortgages is a

Accepted Answer

A)  hybrid real estate investment trust. 
B)  blind pool syndicate. 
C)  real estate general partnership. 
D)  hybrid limited partnership. 
E)  mortgage real estate investment trust. 
A)  hybrid real estate investment trust. 
B)  blind pool syndicate. 
C)  real estate general partnership. 
D)  hybrid limited partnership. 
E)  mortgage real estate investment trust.

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-"Mutual Fund" technically refers to [an open-end | a closed-end] investment company.

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 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You [could | could not] learn in the financial press whether your fund charged a redemption fee.

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 8

As of mid-2012 housing prices have shown a significant,consistent upward trend indicating a recovery.

Accepted Answer

A) True 
 B)False

Question 9

A(n)____ actually runs the portfolio and makes the buy and sell decisions

Accepted Answer

A)  transfer agent 
B)  distributor 
C)  money manager 
D)  investment advisor 
E)  c and d 
A)  transfer agent 
B)  distributor 
C)  money manager 
D)  investment advisor 
E)  c and d

Question 10

A fund's prospectus would provide information about a fund's fee structure.

Accepted Answer

A) True 
 B)False

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The securities owned by a mutual fund are in the custody of [the management company | an independent bank].

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 12

Exchange traded funds can create new shares to meet demand.

Accepted Answer

A) True 
 B)False

Question 13

Asset allocation funds invest in stocks,bonds,and cash.

Accepted Answer

A) True 
 B)False

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A fund that invests both in foreign and U.S.Securities would be known as [an international | a global] fund.

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 15

Investors select and purchase securities held within mutual funds.

Accepted Answer

A) True 
 B)False

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Both load and no-load | Only no-load] funds can charge a redemption fee.

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 17

Investors tend to use mutual funds for which of the following reasons

Accepted Answer

A)  Diversification 
B)  Professional Management 
C)  Financial Returns 
D)  convenience 
E)  all of the above 
A)  Diversification 
B)  Professional Management 
C)  Financial Returns 
D)  convenience 
E)  all of the above

Question 18

Spiders and Diamonds are examples of ETF's.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A quotation for a mutual fund shows a NAV of $9.60 and an offer price of $10.00.With an investment of $1,000,you could buy [104.17 | 100] shares.

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 fund that invests only in a particular industry would be a ____ fund.

Accepted Answer

A)  money market 
B)  maximum capital 
C)  sector 
D)  balanced 
E)  bond 
A)  money market 
B)  maximum capital 
C)  sector 
D)  balanced 
E)  bond

Socially responsible funds have experienced lower return than other types of funds of similar risk.

A mutual fund always provides active professional investment management.

Index funds are actively managed.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The value of your shares in a closed-end fund is determined by [the fund's NAV | supply and demand factors].

A closed-end investment company that invests in various types of real estate and mortgages is a

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -"Mutual Fund" technically refers to [an open-end | a closed-end] investment company.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You [could | could not] learn in the financial press whether your fund charged a redemption fee.

As of mid-2012 housing prices have shown a significant,consistent upward trend indicating a recovery.

A(n)____ actually runs the portfolio and makes the buy and sell decisions

A fund's prospectus would provide information about a fund's fee structure.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The securities owned by a mutual fund are in the custody of [the management company | an independent bank].

Exchange traded funds can create new shares to meet demand.

Asset allocation funds invest in stocks,bonds,and cash.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A fund that invests both in foreign and U.S.Securities would be known as [an international | a global] fund.

Investors select and purchase securities held within mutual funds.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Both load and no-load | Only no-load] funds can charge a redemption fee.

Investors tend to use mutual funds for which of the following reasons

Spiders and Diamonds are examples of ETF's.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A quotation for a mutual fund shows a NAV of $9.60 and an offer price of $10.00.With an investment of $1,000,you could buy [104.17 | 100] shares.

A fund that invests only in a particular industry would be a ____ fund.

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

Socially responsible funds have experienced lower return than other types of funds of similar risk.

A mutual fund always provides active professional investment management.

Index funds are actively managed.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The value of your shares in a closed-end fund is determined by [the fund's NAV | supply and demand factors].

A closed-end investment company that invests in various types of real estate and mortgages is a

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -"Mutual Fund" technically refers to [an open-end | a closed-end] investment company.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You [could | could not] learn in the financial press whether your fund charged a redemption fee.

As of mid-2012 housing prices have shown a significant,consistent upward trend indicating a recovery.

A(n)____ actually runs the portfolio and makes the buy and sell decisions

A fund's prospectus would provide information about a fund's fee structure.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The securities owned by a mutual fund are in the custody of [the management company | an independent bank].

Exchange traded funds can create new shares to meet demand.

Asset allocation funds invest in stocks,bonds,and cash.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A fund that invests both in foreign and U.S.Securities would be known as [an international | a global] fund.

Investors select and purchase securities held within mutual funds.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Both load and no-load | Only no-load] funds can charge a redemption fee.

Investors tend to use mutual funds for which of the following reasons

Spiders and Diamonds are examples of ETF's.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A quotation for a mutual fund shows a NAV of $9.60 and an offer price of $10.00.With an investment of $1,000,you could buy [104.17 | 100] shares.

A fund that invests only in a particular industry would be a ____ fund.

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