Exam 20: The Mutual Fund Industry

The net asset value of a mutual fund is the average market price of the stocks, bonds, and other assets the fund owns.

The largest share of assets held by money market mutual funds is

Retirement funds account for about 31% Of all mutual fund assets.

People who take their money out of insured bank deposits to invest in uninsured money market mutual funds have ________ risk because money market funds invest in ________ assets.

________ intermediation means that small investors can pool their funds with other investors to purchase high face value securities.

How is a mutual fund's net asset value calculated?

Which of the following is not a proposal to deal with abuses in the mutual fund industry?

Measured by assets, the most popular type of bond fund is the ________ bond fund.

Over the past twenty years, mutual fund fees have ________, largely because ________.

Hedge funds are

Which of the following is an advantage to investors of an open-end mutual fund?

At the end of 2009 there were over ________ separate mutual funds with total assets over ________.

How does the governance structure of mutual funds lead to asymmetric information and conflicts of interest?

Which of the following is most likely to be a no-load fund?

Equity funds can be placed in which class according to the Investment Company Institute?

From largest to smallest in terms of total assets, the four classes of mutual funds are

The primary purpose of loads is to provide compensation for sales brokers.

Discuss the proposals that have been made to reduce the conflict of interest abuses in the mutual funds industry.

________ funds are the simplest type of investment funds to manage.

________ bonds combine stocks into one fund.