Question 1

A mutual fund's NAV is its:

Accepted Answer

A)  normal average value. 
B)  nationally advertized value. 
C)  noted assessment vision. 
D)  net asset value. 
E)  none of these 
A)  normal average value. 
B)  nationally advertized value. 
C)  noted assessment vision. 
D)  net asset value. 
E)  none of these

Question 2

Socially Responsible Funds typically avoid investing in:

Accepted Answer

A)  environmentally sound companies. 
B)  alcohol and Tobacco stocks. 
C)  car companies that do not promote safety. 
D)  fast food chains that sell meat. 
E)  all of the above 
A)  environmentally sound companies. 
B)  alcohol and Tobacco stocks. 
C)  car companies that do not promote safety. 
D)  fast food chains that sell meat. 
E)  all of the above

Question 3

Sector funds may include stocks from different indexes.

Accepted Answer

A) True 
 B)False

Question 4

The approximate yield on a mutual fund depends only on the fund's dividend income and capital gains distributions.

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.
-A growth mutual fund invests in stocks that are very likely [pay | not pay] dividends.

Accepted Answer

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

Question 6

Open-ended mutual funds can be traded on an intraday basis.

Accepted Answer

A) True 
 B)False

Question 7

The mutual fund fees that are paid directly from the investor include:

Accepted Answer

A)  other and administrative expenses. 
B)  fund manager profits. 
C)  annual account maintenance fee. 
D)  management fee. 
E)  12(b)-1 fee. 
A)  other and administrative expenses. 
B)  fund manager profits. 
C)  annual account maintenance fee. 
D)  management fee. 
E)  12(b)-1 fee.

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.
-A fund that invests both in foreign and U.S.Securities would be known as [an international | a global] fund.

Accepted Answer

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

Question 9

A 12(b)-1 fee can only be charged by a load mutual fund.

Accepted Answer

A) True 
 B)False

Question 10

In the Wall Street Journal's listing of mutual funds,an "r" 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 11

The current market value of all the securities a mutual fund owns is called the:

Accepted Answer

A)  compounded value. 
B)  par value. 
C)  net asset value. 
D)  book value. 
E)  liquidation value. 
A)  compounded value. 
B)  par value. 
C)  net asset value. 
D)  book value. 
E)  liquidation value.

Question 12

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.
-Value funds are comprised of stocks with [low | high] PE ratios.

Accepted Answer

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

Question 13

ETFs often distribute large capital gains to their shareholders.

Accepted Answer

A) True 
 B)False

Question 14

What type of real estate investment trust (REIT)is most attractive to income oriented investors?

Accepted Answer

A)  Equity 
B)  Mortgage 
C)  Hybrid 
D)  Unit trust 
E)  Exchange-traded 
A)  Equity 
B)  Mortgage 
C)  Hybrid 
D)  Unit trust 
E)  Exchange-traded

Question 15

Dividend income,capital gains distributions received,and changes in the fund's share price are all sources of return for a mutual fund.

Accepted Answer

A) True 
 B)False

Question 16

A(n)_____ fund invests primarily in a portfolio of common stocks with a main objective to increase the current income.

Accepted Answer

A)  balanced 
B)  money market 
C)  growth 
D)  sector 
E)  equity-income 
A)  balanced 
B)  money market 
C)  growth 
D)  sector 
E)  equity-income

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 can lose money in a mutual fund because of [fraud of the management company | a downturn in the market].

Accepted Answer

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

Question 19

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.

Accepted Answer

Net asset

Question 20

-Both load and no-load funds will always charge a:

Accepted Answer

A)  transaction fee. 
B)  12(b)-1 fee. 
C)  management fee. 
D)  fee on the sale of the shares. 
E)  redemption fee. 
A)  transaction fee. 
B)  12(b)-1 fee. 
C)  management fee. 
D)  fee on the sale of the shares. 
E)  redemption fee.

A mutual fund's NAV is its:

Socially Responsible Funds typically avoid investing in:

Sector funds may include stocks from different indexes.

The approximate yield on a mutual fund depends only on the fund's dividend income and capital gains distributions.

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 growth mutual fund invests in stocks that are very likely [pay | not pay] dividends.

Open-ended mutual funds can be traded on an intraday basis.

The mutual fund fees that are paid directly from the investor include:

A 12(b)-1 fee can only be charged by a load mutual fund.

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

The current market value of all the securities a mutual fund owns is called the:

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. -Value funds are comprised of stocks with [low | high] PE ratios.

ETFs often distribute large capital gains to their shareholders.

What type of real estate investment trust (REIT)is most attractive to income oriented investors?

Dividend income,capital gains distributions received,and changes in the fund's share price are all sources of return for a mutual fund.

A(n)_____ fund invests primarily in a portfolio of common stocks with a main objective to increase the current income.

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

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.

-Both load and no-load funds will always charge a:

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 mutual fund's NAV is its:

Socially Responsible Funds typically avoid investing in:

Sector funds may include stocks from different indexes.

The approximate yield on a mutual fund depends only on the fund's dividend income and capital gains distributions.

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 growth mutual fund invests in stocks that are very likely [pay | not pay] dividends.

Open-ended mutual funds can be traded on an intraday basis.

The mutual fund fees that are paid directly from the investor include:

A 12(b)-1 fee can only be charged by a load mutual fund.

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

The current market value of all the securities a mutual fund owns is called the:

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. -Value funds are comprised of stocks with [low | high] PE ratios.

ETFs often distribute large capital gains to their shareholders.

What type of real estate investment trust (REIT)is most attractive to income oriented investors?

Dividend income,capital gains distributions received,and changes in the fund's share price are all sources of return for a mutual fund.

A(n)_____ fund invests primarily in a portfolio of common stocks with a main objective to increase the current income.

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

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.

-Both load and no-load funds will always charge a:

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