Question 1

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 2

A hybrid REIT would invest only in real estate mortgages.

Accepted Answer

A) True 
 B)False

Question 3

Low-load funds do not charge a commission upon initial purchase.

Accepted Answer

A) True 
 B)False

Question 4

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 5

A technology fund is an example of a sector fund.

Accepted Answer

A) True 
 B)False

Question 6

Asset allocation funds invest in stocks,bonds,and cash.

Accepted Answer

A) True 
 B)False

Question 7

Investors tend to use mutual funds for which of the following reasons

Accepted Answer

A)  Diversification 
B)  Professional Management 
C)  Financial Returns 
D)  convenience 
E)  all of the above 
A)  Diversification 
B)  Professional Management 
C)  Financial Returns 
D)  convenience 
E)  all of the above

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.
-Mutual funds must value their securities [monthly | daily].

Accepted Answer

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

Question 9

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 10

The most important advantage of a mutual fund is pooled diversification.

Accepted Answer

A) True 
 B)False

Question 11

The major benefit to small investors of mutual funds is diversification.

Accepted Answer

A) True 
 B)False

Question 12

A(n)____ fund is quite speculative.

Accepted Answer

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

Question 13

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.
-Exchange-indexed funds are [actively | passively] managed pools of investments.

Accepted Answer

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

Question 14

____ would not be a reason for purchasing mutual funds.

Accepted Answer

A)  Diversification 
B)  Professional management 
C)  Tax advantage 
D)  Financial return 
E)  Convenience 
A)  Diversification 
B)  Professional management 
C)  Tax advantage 
D)  Financial return 
E)  Convenience

Question 15

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 16

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.
-Individuals would not trade among themselves in [a closed end | an open end] investment company.

Accepted Answer

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

Question 17

The fund whose main objective is growth is known as a(n)____ fund.

Accepted Answer

A)  balanced 
B)  preferred stock 
C)  money market 
D)  index 
E)  none of these 
A)  balanced 
B)  preferred stock 
C)  money market 
D)  index 
E)  none of these

Question 18

Advantages of exchange traded funds over mutual funds include all of the following except

Accepted Answer

A)  narrow geographic region 
B)  single foreign countries 
C)  better diversification 
D)  industry focus 
E)  sector focus 
A)  narrow geographic region 
B)  single foreign countries 
C)  better diversification 
D)  industry focus 
E)  sector focus

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

All no load funds charge an upfront fee to purchase shares of a mutual fund.

Accepted Answer

A) True 
 B)False

Socially Responsible Funds typically avoid investing in

A hybrid REIT would invest only in real estate mortgages.

Low-load funds do not charge a commission upon initial 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. -The primary investment objective of bond mutual funds is [growth | income].

A technology fund is an example of a sector fund.

Asset allocation funds invest in stocks,bonds,and cash.

Investors tend to use mutual funds for which of the following reasons

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. -Mutual funds must value their securities [monthly | daily].

The most important advantage of a mutual fund is pooled diversification.

The major benefit to small investors of mutual funds is diversification.

A(n)____ fund is quite speculative.

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. -Exchange-indexed funds are [actively | passively] managed pools of investments.

____ would not be a reason for purchasing mutual funds.

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

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. -Individuals would not trade among themselves in [a closed end | an open end] investment company.

The fund whose main objective is growth is known as a(n)____ fund.

Advantages of exchange traded funds over mutual funds include all of the following except

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

All no load funds charge an upfront fee to purchase shares of a mutual 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

Socially Responsible Funds typically avoid investing in

A hybrid REIT would invest only in real estate mortgages.

Low-load funds do not charge a commission upon initial 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. -The primary investment objective of bond mutual funds is [growth | income].

A technology fund is an example of a sector fund.

Asset allocation funds invest in stocks,bonds,and cash.

Investors tend to use mutual funds for which of the following reasons

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. -Mutual funds must value their securities [monthly | daily].

The most important advantage of a mutual fund is pooled diversification.

The major benefit to small investors of mutual funds is diversification.

A(n)____ fund is quite speculative.

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. -Exchange-indexed funds are [actively | passively] managed pools of investments.

____ would not be a reason for purchasing mutual funds.

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

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. -Individuals would not trade among themselves in [a closed end | an open end] investment company.

The fund whose main objective is growth is known as a(n)____ fund.

Advantages of exchange traded funds over mutual funds include all of the following except

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

All no load funds charge an upfront fee to purchase shares of a mutual 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