Exam 13: Investing in Mutual Funds

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

A mutual fund with an objective of both growth and income is a(n)

Balanced funds invest in a mix of utility and growth equities.

The expected cash flows of a real estate investment are determined by rent,depreciation,and taxes.

Investors select and purchase securities held within mutual funds.

The most important advantage of a mutual fund is pooled diversification.

Load fees charged on mutual funds help insure that the fund is well managed and that the investor's yields will be greater than those on no-load funds.

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

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 primary reason for investing in mutual funds is [professional management | diversification].

Mutual fund conversion privileges can often be exercised online.

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 discover the actual fees charged by your mutual fund in the [daily Wall Street Journal | fund prospectus].

Asset allocation funds concentrate on one type of investment.

Closed-end mutual funds companies buy their shares back from investors at NAV.

Asset allocation funds invest money in

The primary investment objective of bond funds is income.

Which of the following bond mutual funds would provide tax-free income?

Real estate depreciation is considered a tax shelter.

ETFs often distribute large capital gains to their shareholders.

For most investors,the best way to deal in foreign securities is through an international mutual fund.

All no-load funds charge an upfront fee to purchase shares of a mutual fund.