Question 1

Loads are transaction charges for mutual funds.

Accepted Answer

A) True 
 B)False  True

Question 2

Value funds look for stocks with relatively all the following except:

Accepted Answer

A)  high dividend yields. 
B)  moderate amounts of leverage. 
C)  low P/E ratios. 
D)  rapid growth. 
E)  undiscovered companies. 
A)  high dividend yields. 
B)  moderate amounts of leverage. 
C)  low P/E ratios. 
D)  rapid growth. 
E)  undiscovered companies. D

Question 3

Which of the following is not a source of mutual fund returns?

Accepted Answer

A)  Dividend income 
B)  Capital gains 
C)  Changes in NAV 
D)  Changes in IDB 
E)  All of the above are sources of mutual fund returns 
A)  Dividend income 
B)  Capital gains 
C)  Changes in NAV 
D)  Changes in IDB 
E)  All of the above are sources of mutual fund returns D

Question 4

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

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

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.
-All funds will have [management | 12(b)-1] fees.

Accepted Answer

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

Question 7

Mutual fund conversion privileges can often be exercised using an 800 telephone number.

Accepted Answer

A) True 
 B)False

Question 8

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 9

The investment objective of bond and money market funds is growth.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Asset allocation funds invest entirely in U.S.and foreign stock and bonds.

Accepted Answer

A) True 
 B)False

Question 12

The price per share of a closed-end investment fund could be lower than its NAV.

Accepted Answer

A) True 
 B)False

Question 13

The price an investor can sell his shares of an open-end mutual fund share is its net asset value.

Accepted Answer

A) True 
 B)False

Question 14

Index funds are actively managed.

Accepted Answer

A) True 
 B)False

Question 15

_____ would not be a reason for purchasing mutual funds.

Accepted Answer

A)  Diversification 
B)  Professional management 
C)  Safety of deposits 
D)  Financial return 
E)  Convenience 
A)  Diversification 
B)  Professional management 
C)  Safety of deposits 
D)  Financial return 
E)  Convenience

Question 16

ETFs are set up to protect investors from capital gains taxes better than the most mutual funds can.

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.
-A fund that invests only in utility stocks could be classified as [money market | a sector] fund.

Accepted Answer

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

Question 18

Investment company earnings result solely from dividends.

Accepted Answer

A) True 
 B)False

Question 19

No-load funds are generally sold directly to the investor without a salesperson.

Accepted Answer

A) True 
 B)False

Question 20

If you are a mutual fund investor who needs steady income,you might take advantage of a fund's:

Accepted Answer

A)  retirement plans. 
B)  exchange privileges. 
C)  automatic reinvestment plans. 
D)  systematic withdrawal plans. 
E)  none of these 
A)  retirement plans. 
B)  exchange privileges. 
C)  automatic reinvestment plans. 
D)  systematic withdrawal plans. 
E)  none of these

Loads are transaction charges for mutual funds.

Value funds look for stocks with relatively all the following except:

Which of the following is not a source of mutual fund returns?

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

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. -All funds will have [management | 12(b)-1] fees.

Mutual fund conversion privileges can often be exercised using an 800 telephone number.

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.

The investment objective of bond and money market funds is growth.

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

Asset allocation funds invest entirely in U.S.and foreign stock and bonds.

The price per share of a closed-end investment fund could be lower than its NAV.

The price an investor can sell his shares of an open-end mutual fund share is its net asset value.

Index funds are actively managed.

_____ would not be a reason for purchasing mutual funds.

ETFs are set up to protect investors from capital gains taxes better than the most mutual funds can.

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. -A fund that invests only in utility stocks could be classified as [money market | a sector] fund.

Investment company earnings result solely from dividends.

No-load funds are generally sold directly to the investor without a salesperson.

If you are a mutual fund investor who needs steady income,you might take advantage of a fund's:

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

Loads are transaction charges for mutual funds.

Value funds look for stocks with relatively all the following except:

Which of the following is not a source of mutual fund returns?

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

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. -All funds will have [management | 12(b)-1] fees.

Mutual fund conversion privileges can often be exercised using an 800 telephone number.

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.

The investment objective of bond and money market funds is growth.

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

Asset allocation funds invest entirely in U.S.and foreign stock and bonds.

The price per share of a closed-end investment fund could be lower than its NAV.

The price an investor can sell his shares of an open-end mutual fund share is its net asset value.

Index funds are actively managed.

_____ would not be a reason for purchasing mutual funds.

ETFs are set up to protect investors from capital gains taxes better than the most mutual funds can.

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. -A fund that invests only in utility stocks could be classified as [money market | a sector] fund.

Investment company earnings result solely from dividends.

No-load funds are generally sold directly to the investor without a salesperson.

If you are a mutual fund investor who needs steady income,you might take advantage of a fund's:

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