Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

There are more closed-end investment companies than there are open-end companies.

Accepted Answer

A) True 
 B)False  False

Question 3

A 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. E

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.
-The market value of your mutual fund shares will move in the [same | opposite] direction as the market value of the underlying securities.

Accepted Answer

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

Question 6

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.

Question 7

A mutual fund always provides active professional investment management.

Accepted Answer

A) True 
 B)False

Question 8

Back-ended load funds offer more liquidity to investors than no-load funds.

Accepted Answer

A) True 
 B)False

Question 9

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.

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

Question 11

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

Question 12

Socially responsible funds have experienced lower return than other types of funds of similar risk.

Accepted Answer

A) True 
 B)False

Question 13

ETF often distribute large capital gains to their shareholders.

Accepted Answer

A) True 
 B)False

Question 14

Most mutual funds allow investors to participate in

Accepted Answer

A)  Automatic reinvestment plans 
B)  Automatic investment plans 
C)  DRIP plans 
D)  a and b above 
E)  a and c above 
A)  Automatic reinvestment plans 
B)  Automatic investment plans 
C)  DRIP plans 
D)  a and b above 
E)  a and c above

Question 15

Exchange traded mutual funds are known as closed-end mutual funds.

Accepted Answer

A) True 
 B)False

Question 16

Spiders and Diamonds are examples of ETF's.

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.
-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 18

The following mutual fund fees are paid directly from the investor

Accepted Answer

A)  Other and administrative expenses 
B)  Fund manager profits 
C)  Annual Account Maintenance Fee 
D)  Management Fee 
E)  12b-1 Fee 
A)  Other and administrative expenses 
B)  Fund manager profits 
C)  Annual Account Maintenance Fee 
D)  Management Fee 
E)  12b-1 Fee

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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

There are more closed-end investment companies than there are open-end companies.

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

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

Both load and no-load funds will always charge a

A mutual fund always provides active professional investment management.

Back-ended load funds offer more liquidity to investors than no-load funds.

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

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.

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

Socially responsible funds have experienced lower return than other types of funds of similar risk.

ETF often distribute large capital gains to their shareholders.

Most mutual funds allow investors to participate in

Exchange traded mutual funds are known as closed-end mutual funds.

Spiders and Diamonds are examples of ETF's.

The following mutual fund fees are paid directly from the investor

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

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

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

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

There are more closed-end investment companies than there are open-end companies.

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

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

Both load and no-load funds will always charge a

A mutual fund always provides active professional investment management.

Back-ended load funds offer more liquidity to investors than no-load funds.

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

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.

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

Socially responsible funds have experienced lower return than other types of funds of similar risk.

ETF often distribute large capital gains to their shareholders.

Most mutual funds allow investors to participate in

Exchange traded mutual funds are known as closed-end mutual funds.

Spiders and Diamonds are examples of ETF's.

The following mutual fund fees are paid directly from the investor

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

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

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