Question 1

Sector funds usually restrict their investments to specific industries.

Accepted Answer

A) True 
 B)False

Question 2

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

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.
-[Aggressive growth | Equity-income] funds would be more speculative.

Accepted Answer

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

Question 4

The maximum sales charge a no-load mutual fund can charge is:

Accepted Answer

A)  7% of the net asset value. 
B)  7% of the purchase price. 
C)  8 1/2% of the net asset value. 
D)  8 1/2% of the purchase price. 
E)  none of these 
A)  7% of the net asset value. 
B)  7% of the purchase price. 
C)  8 1/2% of the net asset value. 
D)  8 1/2% of the purchase price. 
E)  none of these

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 no-load mutual fund would most likely be sold by [a broker | calling the mutual fund company].

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.
-You [could | could not] switch your investments from your Fidelity income fund to another Fidelity fund by making a phone call.

Accepted Answer

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

Question 7

Index funds have provided competitive rates of return because:

Accepted Answer

A)  their costs are lower than other stock funds. 
B)  it is difficult to outperform the market. 
C)  they have very low turnover rates. 
D)  they are tax efficient. 
E)  all of the above 
A)  their costs are lower than other stock funds. 
B)  it is difficult to outperform the market. 
C)  they have very low turnover rates. 
D)  they are tax efficient. 
E)  all of the above

Question 8

Mutual funds may be bought and sold through:

Accepted Answer

A)  mutual savings banks and brokerage firms. 
B)  funds salespeople and mutual savings banks. 
C)  brokerage firms and fund salespeople. 
D)  brokerage firms and funds exchange. 
E)  fund exchange and fund salespeople. 
A)  mutual savings banks and brokerage firms. 
B)  funds salespeople and mutual savings banks. 
C)  brokerage firms and fund salespeople. 
D)  brokerage firms and funds exchange. 
E)  fund exchange and fund salespeople.

Question 9

A mutual fund with a high 12(b)-1 fee will have a low expense ratio.

Accepted Answer

A) True 
 B)False

Question 10

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

Sector funds usually restrict their investments to specific industries.

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

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. -[Aggressive growth | Equity-income] funds would be more speculative.

The maximum sales charge a no-load mutual fund can charge is:

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 no-load mutual fund would most likely be sold by [a broker | calling the mutual fund company].

Index funds have provided competitive rates of return because:

Mutual funds may be bought and sold through:

A mutual fund with a high 12(b)-1 fee will have a low expense ratio.

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

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

Sector funds usually restrict their investments to specific industries.

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

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. -[Aggressive growth | Equity-income] funds would be more speculative.

The maximum sales charge a no-load mutual fund can charge is:

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 no-load mutual fund would most likely be sold by [a broker | calling the mutual fund company].

Index funds have provided competitive rates of return because:

Mutual funds may be bought and sold through:

A mutual fund with a high 12(b)-1 fee will have a low expense ratio.

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

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