Question 1

A mutual fund cannot charge more than 6.5 percent in total sales charges and fees.

Accepted Answer

A) True 
 B)False  False

Question 2

A mutual fund allows investors to

Accepted Answer

A) trade stocks on the NASDAQ. 
B) instruct the purchase of specific securities. 
C) become owners of a widely diversified portfolio of securities. 
D) deduct unrealized losses from their taxes. 
E) do all of these. 
A) trade stocks on the NASDAQ. 
B) instruct the purchase of specific securities. 
C) become owners of a widely diversified portfolio of securities. 
D) deduct unrealized losses from their taxes. 
E) do all of these. C

Question 3

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 these 
A) Traded on listed exchanges 
B) Closed-end funds 
C) Generally organized as sector funds 
D) Actively managed funds 
E) All of these A

Question 4

The major reason that investors use mutual funds is their contractual plans,which force regular investing.

Accepted Answer

A) True 
 B)False

Question 5

The individual manager of a mutual fund has little to do with a fund's success.

Accepted Answer

A) True 
 B)False

Question 6

A closed-end investment company can create an unlimited number of shares.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Spiders and Diamonds are examples of ETFs.

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) management company 
D) investment advisor 
E) custodian 
A) transfer agent 
B) distributor 
C) management company 
D) investment advisor 
E) custodian

Question 10

Money funds are high in both liquidity and risk.

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

Financial leverage is less of a factor in real estate investment returns than with other types of investments.

Accepted Answer

A) True 
 B)False

Question 13

Index funds have provided competitive rates of return because

Accepted Answer

A) their costs are lower than other stock funds. 
B) it is difficult to outperform the market. 
C) they have very low turnover rates. 
D) they are tax efficient. 
E) all of these. 
A) their costs are lower than other stock funds. 
B) it is difficult to outperform the market. 
C) they have very low turnover rates. 
D) they are tax efficient. 
E) all of these.

Question 14

The objective of bond and money market funds is growth.

Accepted Answer

A) True 
 B)False

Question 15

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You [could | could not] switch your investments from your Fidelity income fund to another Fidelity fund by making a phone call.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

Growth-and-income funds invest most of their capital in common stocks.

Accepted Answer

A) True 
 B)False

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Growth | Equity-income] funds would be more speculative.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

Aggressive growth funds typically buy stocks with high price/earnings ratios and stocks with volatile price fluctuations.

Accepted Answer

A) True 
 B)False

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The first mutual fund in the United States was started in [?1954 | ?1924].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The value of your shares in a closed-end fund is determined by [the fund's NAV only | ?the fund's NAV plus supply and demand factors].

Accepted Answer

The answer of Choose the word or phrase in [...

A mutual fund cannot charge more than 6.5 percent in total sales charges and fees.

A mutual fund allows investors to

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

The major reason that investors use mutual funds is their contractual plans,which force regular investing.

The individual manager of a mutual fund has little to do with a fund's success.

A closed-end investment company can create an unlimited number of shares.

Mutual funds do not offer

Spiders and Diamonds are examples of ETFs.

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

Money funds are high in both liquidity and risk.

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

Financial leverage is less of a factor in real estate investment returns than with other types of investments.

Index funds have provided competitive rates of return because

The objective of bond and money market funds is growth.

Growth-and-income funds invest most of their capital in common stocks.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Growth | Equity-income] funds would be more speculative.

Aggressive growth funds typically buy stocks with high price/earnings ratios and stocks with volatile price fluctuations.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The first mutual fund in the United States was started in [?1954 | ?1924].

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

A mutual fund cannot charge more than 6.5 percent in total sales charges and fees.

A mutual fund allows investors to

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

The major reason that investors use mutual funds is their contractual plans,which force regular investing.

The individual manager of a mutual fund has little to do with a fund's success.

A closed-end investment company can create an unlimited number of shares.

Mutual funds do not offer

Spiders and Diamonds are examples of ETFs.

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

Money funds are high in both liquidity and risk.

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

Financial leverage is less of a factor in real estate investment returns than with other types of investments.

Index funds have provided competitive rates of return because

The objective of bond and money market funds is growth.

Growth-and-income funds invest most of their capital in common stocks.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Growth | Equity-income] funds would be more speculative.

Aggressive growth funds typically buy stocks with high price/earnings ratios and stocks with volatile price fluctuations.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The first mutual fund in the United States was started in [?1954 | ?1924].

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