Question 1

Sector funds usually restrict their investments to specific industries.

Accepted Answer

A) True 
 B)False

Question 2

A group of funds managed by a single company which offers conversion privileges is called a

Accepted Answer

A)  management group. 
B)  fund family. 
C)  brokerage group. 
D)  switched funds. 
E)  convenience group. 
A)  management group. 
B)  fund family. 
C)  brokerage group. 
D)  switched funds. 
E)  convenience group.

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.
-One type of [stock | bond] fund provides tax-free income.

Accepted Answer

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

Question 4

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)  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 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.
-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 6

When you buy shares in a no-load fund,you will pay the NAV.

Accepted Answer

A) True 
 B)False

Question 7

Value funds look for stocks with relatively all the following except

Accepted Answer

A)  high dividend yields 
B)  moderate amounts of leverage 
C)  low P/E ratios 
D)  rapid growth 
E)  undiscovered companies 
A)  high dividend yields 
B)  moderate amounts of leverage 
C)  low P/E ratios 
D)  rapid growth 
E)  undiscovered companies

Question 8

Bond mutual funds are always less risky than stock mutual funds.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

Which of the following are characteristic of exchange-traded mutual funds?

Accepted Answer

A)  traded on listed exchanges 
B)  closed-end funds 
C)  generally organized as sector funds 
D)  actively managed funds 
E)  all of the above 
A)  traded on listed exchanges 
B)  closed-end funds 
C)  generally organized as sector funds 
D)  actively managed funds 
E)  all of the above

Question 12

Global mutual funds can invest both in domestic and international stocks.

Accepted Answer

A) True 
 B)False

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.
-Value funds look for stocks with relatively [high | low] dividend yields.

Accepted Answer

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

Question 14

Growth funds are mutual funds designed for short term investing.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 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.
-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 18

Load fees charged on mutual funds help insure that the fund is well managed and that the investor's yields will be greater than those on no-load funds.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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

Question 20

A mutual fund allows investors to

Accepted Answer

A)  Trade stocks on the NASDAQ 
B)  Instruct the purchase of specific securities 
C)  Become owners of a widely diversified portfolio of securities 
D)  Deduct unrealized losses from their taxes 
E)  All of the above 
A)  Trade stocks on the NASDAQ 
B)  Instruct the purchase of specific securities 
C)  Become owners of a widely diversified portfolio of securities 
D)  Deduct unrealized losses from their taxes 
E)  All of the above

Sector funds usually restrict their investments to specific industries.

A group of funds managed by a single company which offers conversion privileges is called a

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. -One type of [stock | bond] fund provides tax-free income.

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.

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].

When you buy shares in a no-load fund,you will pay the NAV.

Value funds look for stocks with relatively all the following except

Bond mutual funds are always less risky than stock mutual funds.

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

Index funds have provided competitive rates of return because

Which of the following are characteristic of exchange-traded mutual funds?

Global mutual funds can invest both in domestic and international stocks.

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 look for stocks with relatively [high | low] dividend yields.

Growth funds are mutual funds designed for short term investing.

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.

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.

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.

Load fees charged on mutual funds help insure that the fund is well managed and that the investor's yields will be greater than those on no-load funds.

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

A mutual fund allows investors to

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.

A group of funds managed by a single company which offers conversion privileges is called a

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. -One type of [stock | bond] fund provides tax-free income.

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.

When you buy shares in a no-load fund,you will pay the NAV.

Value funds look for stocks with relatively all the following except

Bond mutual funds are always less risky than stock mutual funds.

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

Index funds have provided competitive rates of return because

Which of the following are characteristic of exchange-traded mutual funds?

Global mutual funds can invest both in domestic and international stocks.

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 look for stocks with relatively [high | low] dividend yields.

Growth funds are mutual funds designed for short term investing.

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.

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.

Load fees charged on mutual funds help insure that the fund is well managed and that the investor's yields will be greater than those on no-load funds.

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

A mutual fund allows investors to

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