Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 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.
-Advantages of exchange traded funds over mutual funds include [narrow | broad] industry selection.

Accepted Answer

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

Question 4

The NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

Accepted Answer

A)  $10.40 
B)  $10.00 
C)  $9.60 
D)  $9.40 
E)  $9.20 
A)  $10.40 
B)  $10.00 
C)  $9.60 
D)  $9.40 
E)  $9.20

Question 5

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 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 primary investment objective of bond mutual funds is [growth | income].

Accepted Answer

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

Question 7

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.
-[Both load and no-load | Only no-load] funds can charge a redemption fee.

Accepted Answer

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

Question 8

Future fund performance is the real key to investment success with mutual funds.The most important element to examine when attempting to predict a fund's future performance is the:

Accepted Answer

A)  performance of other funds. 
B)  nature of the fund being considered. 
C)  future course of the market. 
D)  fund's past performance. 
E)  all of the above 
A)  performance of other funds. 
B)  nature of the fund being considered. 
C)  future course of the market. 
D)  fund's past performance. 
E)  all of the above

Question 9

Like balanced fund that emphasizes growth in capital is called a(n):

Accepted Answer

A)  bond and preferred stock fund. 
B)  diversified common stock fund. 
C)  equity-income fund. 
D)  money market fund. 
E)  growth-and-income fund. 
A)  bond and preferred stock fund. 
B)  diversified common stock fund. 
C)  equity-income fund. 
D)  money market fund. 
E)  growth-and-income fund.

Question 10

Exchange-traded funds have characteristics of both closed-end and open-end funds.

Accepted Answer

A) True 
 B)False

Question 11

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

Accepted Answer

A) True 
 B)False

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

Question 13

The net asset value (NAV)per share is found by dividing the market value of the fund's securities less the fund's liabilities by the number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Closed-end investment companies are characterized by:

Accepted Answer

A)  number of shares determined by demand. 
B)  price based on net asset value per share. 
C)  variable transaction costs. 
D)  availability for sale or purchase on security markets. 
E)  value dependent on quantity of shares held. 
A)  number of shares determined by demand. 
B)  price based on net asset value per share. 
C)  variable transaction costs. 
D)  availability for sale or purchase on security markets. 
E)  value dependent on quantity of shares held.

Question 17

Mutual funds are actually comprised of two or more companies.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  bond fund. 
B)  equity-income fund. 
C)  growth fund. 
D)  sector fund. 
E)  balanced fund. 
A)  bond fund. 
B)  equity-income fund. 
C)  growth fund. 
D)  sector fund. 
E)  balanced fund.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Closed-ended mutual funds are guaranteed,they cannot lose value.

Accepted Answer

A) True 
 B)False

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

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

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. -Advantages of exchange traded funds over mutual funds include [narrow | broad] industry selection.

The NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

Mutual funds do not offer:

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 investment objective of bond mutual funds is [growth | income].

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. -[Both load and no-load | Only no-load] funds can charge a redemption fee.

Future fund performance is the real key to investment success with mutual funds.The most important element to examine when attempting to predict a fund's future performance is the:

Like balanced fund that emphasizes growth in capital is called a(n):

Exchange-traded funds have characteristics of both closed-end and open-end funds.

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

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.

The net asset value (NAV)per share is found by dividing the market value of the fund's securities less the fund's liabilities by the number of shares outstanding.

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

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

Closed-end investment companies are characterized by:

Mutual funds are actually comprised of two or more companies.

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

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

Closed-ended mutual funds are guaranteed,they cannot lose value.

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

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

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

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. -Advantages of exchange traded funds over mutual funds include [narrow | broad] industry selection.

The NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

Mutual funds do not offer:

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 investment objective of bond mutual funds is [growth | income].

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. -[Both load and no-load | Only no-load] funds can charge a redemption fee.

Future fund performance is the real key to investment success with mutual funds.The most important element to examine when attempting to predict a fund's future performance is the:

Like balanced fund that emphasizes growth in capital is called a(n):

Exchange-traded funds have characteristics of both closed-end and open-end funds.

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

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.

The net asset value (NAV)per share is found by dividing the market value of the fund's securities less the fund's liabilities by the number of shares outstanding.

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

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

Closed-end investment companies are characterized by:

Mutual funds are actually comprised of two or more companies.

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

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

Closed-ended mutual funds are guaranteed,they cannot lose value.

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