Question 1

The fund that is structured to match the performance of a certain market segment is known as a(n)_____ fund.

Accepted Answer

A) balanced 
B) preferred stock 
C) exchange traded 
D) index 
E) capital 
A) balanced 
B) preferred stock 
C) exchange traded 
D) index 
E) capital

Question 2

Jenny's adjusted gross income (AGI)is $120,000 a year and she owns a real estate property that generates a rental income of $10,000 annually.If she pays a mortgage interest of $4,000 on her property per year,she can write off up to _____ in depreciation.

Accepted Answer

A) $4,000 
B) $10,000 
C) $6,000 
D) $14,000 
E) $8,000 
A) $4,000 
B) $10,000 
C) $6,000 
D) $14,000 
E) $8,000

Question 3

Carlos holds a portfolio of stocks and bonds.He is planning to buy a real estate property worth $150,000.He can use financial leverage to make this purchase by:

Accepted Answer

A) paying $75,000 cash in the first installment and selling shares worth $75,000 from his portfolio to pay the second installment. 
B) taking a personal loan worth $100,000 and selling bonds worth $50,000 from his portfolio. 
C) selling bonds from his portfolio worth $80,000 and writing a check for $70,000. 
D) selling stocks from his portfolio worth $50,000 and paying $100,000 in cash. 
E) paying $150,000 in cash from his savings account. 
A) paying $75,000 cash in the first installment and selling shares worth $75,000 from his portfolio to pay the second installment. 
B) taking a personal loan worth $100,000 and selling bonds worth $50,000 from his portfolio. 
C) selling bonds from his portfolio worth $80,000 and writing a check for $70,000. 
D) selling stocks from his portfolio worth $50,000 and paying $100,000 in cash. 
E) paying $150,000 in cash from his savings account.

Question 4

A(n)_____ sells fund shares either directly to the public or through certain authorized dealers.

Accepted Answer

A) investment advisor 
B) custodian 
C) transfer agent 
D) distributor 
E) money manager 
A) investment advisor 
B) custodian 
C) transfer agent 
D) distributor 
E) money manager

Question 5

Investment in real estate is attractive to investors because:

Accepted Answer

A) it is a highly liquid investment. 
B) it permits a high degree of financial leverage. 
C) it is exempted from taxation. 
D) it requires very low investment. 
E) it is highly correlated with the stock markets. 
A) it is a highly liquid investment. 
B) it permits a high degree of financial leverage. 
C) it is exempted from taxation. 
D) it requires very low investment. 
E) it is highly correlated with the stock markets.

Question 6

A closed-end investment company that invests in various types of income-producing properties and mortgage loans is a:

Accepted Answer

A) hybrid real estate investment trust. 
B) blind pool real estate syndicate. 
C) real estate general partnership. 
D) hybrid limited real estate partnership. 
E) mortgage real estate investment trust. 
A) hybrid real estate investment trust. 
B) blind pool real estate syndicate. 
C) real estate general partnership. 
D) hybrid limited real estate partnership. 
E) mortgage real estate investment trust.

Question 7

An annual fee charged by some mutual funds to cover marketing and selling expenses is called the:

Accepted Answer

A) management fee. 
B) back-end load. 
C) transaction fee. 
D) 12b-1 fee. 
E) low-load. 
A) management fee. 
B) back-end load. 
C) transaction fee. 
D) 12b-1 fee. 
E) low-load.

Question 8

Compared to mutual funds,exchange traded funds (ETFs):

Accepted Answer

A) are more cost-effective for investors with a short-term horizon. 
B) generate higher taxable gains. 
C) accommodate investors pursuing narrow market segments. 
D) are more diversified. 
E) have higher overhead expenses. 
A) are more cost-effective for investors with a short-term horizon. 
B) generate higher taxable gains. 
C) accommodate investors pursuing narrow market segments. 
D) are more diversified. 
E) have higher overhead expenses.

The fund that is structured to match the performance of a certain market segment is known as a(n)_____ fund.

Jenny's adjusted gross income (AGI)is $120,000 a year and she owns a real estate property that generates a rental income of $10,000 annually.If she pays a mortgage interest of $4,000 on her property per year,she can write off up to _____ in depreciation.

Carlos holds a portfolio of stocks and bonds.He is planning to buy a real estate property worth $150,000.He can use financial leverage to make this purchase by:

A(n)_____ sells fund shares either directly to the public or through certain authorized dealers.

Investment in real estate is attractive to investors because:

A closed-end investment company that invests in various types of income-producing properties and mortgage loans is a:

An annual fee charged by some mutual funds to cover marketing and selling expenses is called the:

Compared to mutual funds,exchange traded funds (ETFs):

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, ETFS and Real Estate

The fund that is structured to match the performance of a certain market segment is known as a(n)_____ fund.

Jenny's adjusted gross income (AGI)is $120,000 a year and she owns a real estate property that generates a rental income of $10,000 annually.If she pays a mortgage interest of $4,000 on her property per year,she can write off up to _____ in depreciation.

Carlos holds a portfolio of stocks and bonds.He is planning to buy a real estate property worth $150,000.He can use financial leverage to make this purchase by:

A(n)_____ sells fund shares either directly to the public or through certain authorized dealers.

Investment in real estate is attractive to investors because:

A closed-end investment company that invests in various types of income-producing properties and mortgage loans is a:

An annual fee charged by some mutual funds to cover marketing and selling expenses is called the:

Compared to mutual funds,exchange traded funds (ETFs):

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