Question 1

The _________________ is the individual holding shares in the mutual fund on the day the fund distributes dividends and capital gains.

Accepted Answer

A)  Owner 
B)  Fund manager 
C)  Person of record 
D)  Share owner 
A)  Owner 
B)  Fund manager 
C)  Person of record 
D)  Share owner

Question 2

Explain how a closed-end fund differs from an open-end fund?

Accepted Answer

Closed-end mutual funds raise a fixed am

Question 3

What does a high turnover rate indicate?

Accepted Answer

A)  The managers are most likely buying and selling stocks quickly 
B)  There has been a rapid change in prices 
C)  Great movement on the market 
D)  Inflation 
A)  The managers are most likely buying and selling stocks quickly 
B)  There has been a rapid change in prices 
C)  Great movement on the market 
D)  Inflation

Question 4

_________________ investing describes an investment strategy which seeks to maximize both financial return and social good.

Accepted Answer

A)  Socially responsible 
B)  Environmental stewardship 
C)  Consumer protection 
D)  Human rights 
A)  Socially responsible 
B)  Environmental stewardship 
C)  Consumer protection 
D)  Human rights

Question 5

_________________ refers to the operating expenses of the fund divided by the total assets of the fund,expressed as a percentage.

Accepted Answer

A)  An expense ratio 
B)  A front-end load 
C)  An end load 
D)  An E/M ratio 
A)  An expense ratio 
B)  A front-end load 
C)  An end load 
D)  An E/M ratio

Question 6

The _________________ the turnover,the more you will pay in transaction fees (incorporated in the expense ratio),and the more you will pay in capital gains when the assets are sold._________________ turnover funds will have lower transaction costs and lower capital gains.

Accepted Answer

A)  Higher; low 
B)  Lower; high 
C)  Higher; high 
D)  Lower; low 
A)  Higher; low 
B)  Lower; high 
C)  Higher; high 
D)  Lower; low

Question 7

Describe how dividends and capital gains are distributed in a mutual fund.

Accepted Answer

The dividends from the individual stocks

Question 8

Weighted-average maturity (WAM)is a measurement of

Accepted Answer

A)  How old,on average,the assets are in a fund 
B)  How long,on average,the assets are held in the fund 
C)  The length of time until the average security in a fund will mature or be redeemed by its issuer 
D)  The average tenure of the mutual fund's money managers 
A)  How old,on average,the assets are in a fund 
B)  How long,on average,the assets are held in the fund 
C)  The length of time until the average security in a fund will mature or be redeemed by its issuer 
D)  The average tenure of the mutual fund's money managers

Question 9

Net asset value is calculated by the total value of all the assets the _________________.

Accepted Answer

A)  Fund holds 
B)  Fund holds for the historical average for one year,divided by the number of mutual fund shares outstanding 
C)  Fund holds,divided by the number of mutual fund shareholders 
D)  Fund holds,divided by the number of mutual fund shares outstanding 
A)  Fund holds 
B)  Fund holds for the historical average for one year,divided by the number of mutual fund shares outstanding 
C)  Fund holds,divided by the number of mutual fund shareholders 
D)  Fund holds,divided by the number of mutual fund shares outstanding

Question 10

Mutual funds are regulated by

Accepted Answer

A)  The Securities Act of 1933 
B)  The Securities Exchange Act of 1934 
C)  The Investment Company Act of 1940 
D)  The Sarbanes-Oxley Act of 2002 
A)  The Securities Act of 1933 
B)  The Securities Exchange Act of 1934 
C)  The Investment Company Act of 1940 
D)  The Sarbanes-Oxley Act of 2002

Question 11

Where can you find the most complete information on a mutual fund's holdings,expense ratio,and loads?

Accepted Answer

A)  Google 
B)  The fund's annual report 
C)  The fund's prospectus 
D)  The fund manager 
A)  Google 
B)  The fund's annual report 
C)  The fund's prospectus 
D)  The fund manager

Question 12

_________________ are funds that invest in companies from foreign countries.

Accepted Answer

A)  Global funds 
B)  International funds 
C)  Exclusive funds 
D)  Balanced mutual funds 
A)  Global funds 
B)  International funds 
C)  Exclusive funds 
D)  Balanced mutual funds

Question 13

Secondarily,mutual funds are categorized into _________________ funds.

Accepted Answer

A)  Open and closed 
B)  Load and no-load 
C)  Profitable and unprofitable 
D)  Mutual and exclusive 
A)  Open and closed 
B)  Load and no-load 
C)  Profitable and unprofitable 
D)  Mutual and exclusive

Question 14

Where can you find information about fund managers and their investment experience?

Accepted Answer

A)  www.Morningstar.com 
B)  MFS Investment Management Annual Report 
C)  Securities and Exchange Commission monthly publication 
D)  DOW monthly journal 
A)  www.Morningstar.com 
B)  MFS Investment Management Annual Report 
C)  Securities and Exchange Commission monthly publication 
D)  DOW monthly journal

Question 15

List how an actively managed fund differs from an index fund.

Accepted Answer

Actively managed funds (1)have a profess

Question 16

Mutual funds are now regulated by the _________________.

Accepted Answer

A)  Investment Company Act of 1940 
B)  Treasury Department 
C)  FDIC 
D)  NCUI 
A)  Investment Company Act of 1940 
B)  Treasury Department 
C)  FDIC 
D)  NCUI

Question 17

An advantage of buying mutual funds from a full-service broker or financial planner is _________________.

Accepted Answer

A)  No fees or commissions 
B)  Professional advice and help in making your investment decisions 
C)  Knowing that all full-service brokers and financial planners do everything in the best interests of their customers 
D)  Knowing that your returns are guaranteed 
A)  No fees or commissions 
B)  Professional advice and help in making your investment decisions 
C)  Knowing that all full-service brokers and financial planners do everything in the best interests of their customers 
D)  Knowing that your returns are guaranteed

Question 18

_________________ are share classes that are level-load shares and generally do not have a front-end load.

Accepted Answer

A)  Class A 
B)  Class B 
C)  Class C 
D)  Class D 
A)  Class A 
B)  Class B 
C)  Class C 
D)  Class D

Question 19

Which of the following are among the fund manager's responsibilities?

Accepted Answer

A)  Buy and sell assets 
B)  Maximize the growth of the fund given the specific investment objective 
C)  Minimize the losses of the fund 
D)  All options are correct 
A)  Buy and sell assets 
B)  Maximize the growth of the fund given the specific investment objective 
C)  Minimize the losses of the fund 
D)  All options are correct

Question 20

Which is not a typical disadvantage of open-end mutual funds?

Accepted Answer

A)  Management fees and loads 
B)  Guaranteed purchase or acquisition of shares of the mutual fund 
C)  Market risk 
D)  Volatility and high risk 
A)  Management fees and loads 
B)  Guaranteed purchase or acquisition of shares of the mutual fund 
C)  Market risk 
D)  Volatility and high risk

The _________________ is the individual holding shares in the mutual fund on the day the fund distributes dividends and capital gains.

Explain how a closed-end fund differs from an open-end fund?

What does a high turnover rate indicate?

_________________ investing describes an investment strategy which seeks to maximize both financial return and social good.

_________________ refers to the operating expenses of the fund divided by the total assets of the fund,expressed as a percentage.

The _ the turnover,the more you will pay in transaction fees (incorporated in the expense ratio),and the more you will pay in capital gains when the assets are sold._ turnover funds will have lower transaction costs and lower capital gains.

Describe how dividends and capital gains are distributed in a mutual fund.

Weighted-average maturity (WAM)is a measurement of

Net asset value is calculated by the total value of all the assets the _________________.

Mutual funds are regulated by

Where can you find the most complete information on a mutual fund's holdings,expense ratio,and loads?

_________________ are funds that invest in companies from foreign countries.

Secondarily,mutual funds are categorized into _________________ funds.

Where can you find information about fund managers and their investment experience?

List how an actively managed fund differs from an index fund.

Mutual funds are now regulated by the _________________.

An advantage of buying mutual funds from a full-service broker or financial planner is _________________.

_________________ are share classes that are level-load shares and generally do not have a front-end load.

Which of the following are among the fund manager's responsibilities?

Which is not a typical disadvantage of open-end mutual funds?

Money Matters: Values, Vision, Mission, and You

Time Value of Money

Planning and Budgeting

Financial Instruments and Institutions

Consumer Credit: Credit Cards and Student Loans

Credit Bureau Reports and Identity Theft

Auto and Home Loans

Debt, Foreclosure, and Bankruptcy

Tax Management

Insurance: Covering Your Assets

Investment Basics

Stocks

Bonds

Real Estate Investments

Retirement and Estate Planning

Financial Planning for Life

Filters

Exam 12: Mutual Funds

The _________________ is the individual holding shares in the mutual fund on the day the fund distributes dividends and capital gains.

Explain how a closed-end fund differs from an open-end fund?

What does a high turnover rate indicate?

_________________ investing describes an investment strategy which seeks to maximize both financial return and social good.

_________________ refers to the operating expenses of the fund divided by the total assets of the fund,expressed as a percentage.

The _________________ the turnover,the more you will pay in transaction fees (incorporated in the expense ratio),and the more you will pay in capital gains when the assets are sold._________________ turnover funds will have lower transaction costs and lower capital gains.

Describe how dividends and capital gains are distributed in a mutual fund.

Weighted-average maturity (WAM)is a measurement of

Net asset value is calculated by the total value of all the assets the _________________.

Mutual funds are regulated by

Where can you find the most complete information on a mutual fund's holdings,expense ratio,and loads?

_________________ are funds that invest in companies from foreign countries.

Secondarily,mutual funds are categorized into _________________ funds.

Where can you find information about fund managers and their investment experience?

List how an actively managed fund differs from an index fund.

Mutual funds are now regulated by the _________________.

An advantage of buying mutual funds from a full-service broker or financial planner is _________________.

_________________ are share classes that are level-load shares and generally do not have a front-end load.

Which of the following are among the fund manager's responsibilities?

Which is not a typical disadvantage of open-end mutual funds?

Money Matters: Values, Vision, Mission, and You

Time Value of Money

Planning and Budgeting

Financial Instruments and Institutions

Consumer Credit: Credit Cards and Student Loans

Credit Bureau Reports and Identity Theft

Auto and Home Loans

Debt, Foreclosure, and Bankruptcy

Tax Management

Insurance: Covering Your Assets

Investment Basics

Stocks

Bonds

Real Estate Investments

Retirement and Estate Planning

Financial Planning for Life

Filters

The _ the turnover,the more you will pay in transaction fees (incorporated in the expense ratio),and the more you will pay in capital gains when the assets are sold._ turnover funds will have lower transaction costs and lower capital gains.