Question 1

Mutual funds may be classified by the types of securities they purchase.

Accepted Answer

A) True 
 B)False

Question 2

When evaluating a real estate investment,the main consideration is changes in the property value.

Accepted Answer

A) True 
 B)False

Question 3

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.
-There are [more | fewer] mutual funds than there are stocks listed on the New York Stock Exchange.

Accepted Answer

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

Question 4

A real estate investment trust that invests only in mortgages is called an equity trust.

Accepted Answer

A) True 
 B)False

Question 5

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 actual ownership of a mutual fund is in the hands of the [management company | shareholders].

Accepted Answer

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

Question 6

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.
-Exchange-traded funds are investment company shares that trade [at day's close | throughout the day] on stock exchanges.

Accepted Answer

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

Question 7

Advantages of exchange-traded funds over mutual funds include all of the following except

Accepted Answer

A) lower overhead expenses. 
B) lower capital gains tax. 
C) lower expense ratio. 
D) better diversification. 
E) longer time horizon. 
A) lower overhead expenses. 
B) lower capital gains tax. 
C) lower expense ratio. 
D) better diversification. 
E) longer time horizon.

Question 8

Which of the following combines the operating characteristics of an open-end fund with some of the trading characteristics of a closed-end fund?

Accepted Answer

A) Preferred fund 
B) Common fund 
C) Exchange-traded fund 
D) Net-asset fund 
E) Unit investment trust 
A) Preferred fund 
B) Common fund 
C) Exchange-traded fund 
D) Net-asset fund 
E) Unit investment trust

Question 9

Expected cash flows from real estate investments are determined by

Accepted Answer

A) rent. 
B) depreciation. 
C) taxes. 
D) all of these. 
E) none of these. 
A) rent. 
B) depreciation. 
C) taxes. 
D) all of these. 
E) none of these.

Question 10

Dividend income and capital gains distributions are taxed at identical tax rates.

Accepted Answer

A) True 
 B)False

Question 11

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

Accepted Answer

A) management fee. 
B) back-end load. 
C) transaction fee. 
D) 12b-1 fee. 
E) low-load. 
A) management fee. 
B) back-end load. 
C) transaction fee. 
D) 12b-1 fee. 
E) low-load.

Question 12

In The Wall Street Journal's listing of mutual funds,a "p" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

Accepted Answer

A) front-end load 
B) back-end load 
C) 12b-1 fee 
D) management fee 
E) none of these 
A) front-end load 
B) back-end load 
C) 12b-1 fee 
D) management fee 
E) none of these

Question 13

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 cost of buying shares in a load fund is [high | low] compared to the commissions charged for buying stock.

Accepted Answer

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

Question 14

An investment option that allows fund shareholders to funnel fixed amounts of money from their paychecks or bank accounts automatically into a mutual fund is a(n)

Accepted Answer

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

Question 15

A mutual fund is owned by the management company.

Accepted Answer

A) True 
 B)False

Question 16

If a mutual fund provides for automatic reinvestment,the reinvested dividends will not be taxed until the shares are redeemed.

Accepted Answer

A) True 
 B)False

Mutual funds may be classified by the types of securities they purchase.

When evaluating a real estate investment,the main consideration is changes in the property 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. -There are [more | fewer] mutual funds than there are stocks listed on the New York Stock Exchange.

A real estate investment trust that invests only in mortgages is called an equity trust.

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 actual ownership of a mutual fund is in the hands of the [management company | shareholders].

Advantages of exchange-traded funds over mutual funds include all of the following except

Which of the following combines the operating characteristics of an open-end fund with some of the trading characteristics of a closed-end fund?

Expected cash flows from real estate investments are determined by

Dividend income and capital gains distributions are taxed at identical tax rates.

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

In The Wall Street Journal's listing of mutual funds,a "p" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

An investment option that allows fund shareholders to funnel fixed amounts of money from their paychecks or bank accounts automatically into a mutual fund is a(n)

A mutual fund is owned by the management company.

If a mutual fund provides for automatic reinvestment,the reinvested dividends will not be taxed until the shares are redeemed.

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

Mutual funds may be classified by the types of securities they purchase.

When evaluating a real estate investment,the main consideration is changes in the property 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. -There are [more | fewer] mutual funds than there are stocks listed on the New York Stock Exchange.

A real estate investment trust that invests only in mortgages is called an equity trust.

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 actual ownership of a mutual fund is in the hands of the [management company | shareholders].

Advantages of exchange-traded funds over mutual funds include all of the following except

Which of the following combines the operating characteristics of an open-end fund with some of the trading characteristics of a closed-end fund?

Expected cash flows from real estate investments are determined by

Dividend income and capital gains distributions are taxed at identical tax rates.

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

In The Wall Street Journal's listing of mutual funds,a "p" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

An investment option that allows fund shareholders to funnel fixed amounts of money from their paychecks or bank accounts automatically into a mutual fund is a(n)

A mutual fund is owned by the management company.

If a mutual fund provides for automatic reinvestment,the reinvested dividends will not be taxed until the shares are redeemed.

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