Question 1

A group of funds managed by a single company which offers conversion privileges is called a:

Accepted Answer

A)  management group. 
B)  fund family. 
C)  brokerage group. 
D)  switched funds. 
E)  convenience group. 
A)  management group. 
B)  fund family. 
C)  brokerage group. 
D)  switched funds. 
E)  convenience group.

Question 2

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

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.
-The net asset value (NAV)would indicate the price at which you could buy shares in a [load | no-load] mutual fund.

Accepted Answer

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

Question 4

Mutual fund performance is usually evaluated by viewing a given size investment for a certain time period.

Accepted Answer

A) True 
 B)False

Question 5

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

Accepted Answer

A) True 
 B)False

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.
-The value of your shares in a closed-end fund is determined by [the cost of the fund | supply and demand factors].

Accepted Answer

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

Question 7

A guarantee of expected fund's future performance is its past performance.

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.
-If you choose to have your mutual fund dividends automatically reinvested,you [may defer taxes on the dividends until you redeem some shares | still owe taxes for the year the dividends were earned].

Accepted Answer

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

Question 9

Bond mutual funds are always less risky than stock mutual funds.

Accepted Answer

A) True 
 B)False

Question 10

Another name for a mutual fund is:

Accepted Answer

A)  a public investment company. 
B)  an open-end investment company. 
C)  a mutual investment company. 
D)  a private investment company. 
E)  a closed investment company. 
A)  a public investment company. 
B)  an open-end investment company. 
C)  a mutual investment company. 
D)  a private investment company. 
E)  a closed investment company.

Question 11

Redeeming your mutual fund shares might result in a charge called:

Accepted Answer

A)  a back-end load. 
B)  a front-end load. 
C)  a redemption tax. 
D)  a management fee. 
E)  none of these 
A)  a back-end load. 
B)  a front-end load. 
C)  a redemption tax. 
D)  a management fee. 
E)  none of these

Question 12

The major advantage of mutual funds to the small investor is:

Accepted Answer

A)  diversification. 
B)  professional management. 
C)  low cost. 
D)  convenience. 
E)  liquidity. 
A)  diversification. 
B)  professional management. 
C)  low cost. 
D)  convenience. 
E)  liquidity.

Question 13

A technology fund is an example of a sector fund.

Accepted Answer

A) True 
 B)False

Question 14

Growth funds are mutual funds designed for short-term investing.

Accepted Answer

A) True 
 B)False

Question 15

When you buy shares in a load fund,you will pay the NAV only.

Accepted Answer

A) True 
 B)False

Question 16

A hybrid real estate investment trusts (REITs)would invest only in real estate mortgages.

Accepted Answer

A) True 
 B)False

Question 17

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)  all of the above 
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)  all of the above

Question 18

Open-ended mutual funds typically offer more diversification than an individual security.

Accepted Answer

A) True 
 B)False

Question 19

An open-end investment company is commonly known as a mutual fund.

Accepted Answer

A) True 
 B)False

Question 20

By definition,all ETFs are no-load funds.

Accepted Answer

A) True 
 B)False

A group of funds managed by a single company which offers conversion privileges is called a:

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

Mutual fund performance is usually evaluated by viewing a given size investment for a certain time period.

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

A guarantee of expected fund's future performance is its past performance.

Bond mutual funds are always less risky than stock mutual funds.

Another name for a mutual fund is:

Redeeming your mutual fund shares might result in a charge called:

The major advantage of mutual funds to the small investor is:

A technology fund is an example of a sector fund.

Growth funds are mutual funds designed for short-term investing.

When you buy shares in a load fund,you will pay the NAV only.

A hybrid real estate investment trusts (REITs)would invest only in real estate mortgages.

A mutual fund allows investors to:

Open-ended mutual funds typically offer more diversification than an individual security.

An open-end investment company is commonly known as a mutual fund.

By definition,all ETFs are no-load funds.

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 group of funds managed by a single company which offers conversion privileges is called a:

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

Mutual fund performance is usually evaluated by viewing a given size investment for a certain time period.

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

A guarantee of expected fund's future performance is its past performance.

Bond mutual funds are always less risky than stock mutual funds.

Another name for a mutual fund is:

Redeeming your mutual fund shares might result in a charge called:

The major advantage of mutual funds to the small investor is:

A technology fund is an example of a sector fund.

Growth funds are mutual funds designed for short-term investing.

When you buy shares in a load fund,you will pay the NAV only.

A hybrid real estate investment trusts (REITs)would invest only in real estate mortgages.

A mutual fund allows investors to:

Open-ended mutual funds typically offer more diversification than an individual security.

An open-end investment company is commonly known as a mutual fund.

By definition,all ETFs are no-load funds.

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