Question 1

Sometimes,when you purchase shares directly from the mutual fund company itself,there will not be a sales load.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following will affect your capital gains liability?

Accepted Answer

A) Turnover ratio 
B) Changes in net asset value 
C) Expense ratio 
D) All of the above are correct. 
E) Only A and B are correct. 
A) Turnover ratio 
B) Changes in net asset value 
C) Expense ratio 
D) All of the above are correct. 
E) Only A and B are correct. E

Question 3

An equity REIT investment is limited to mortgages on income producing properties.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following mutual fund services is similar in concept to compounding and the time value of money?

Accepted Answer

A) Dollar cost averaging 
B) Automatic reinvestment 
C) Funds express options 
D) Internet switching 
A) Dollar cost averaging 
B) Automatic reinvestment 
C) Funds express options 
D) Internet switching

Question 5

Compare the investment vehicles and tax treatment of tax-exempt and government securities money market mutual funds.

Accepted Answer

The tax-exempt fund invests only in very

Question 6

Bernie has followed the three steps to begin mutual fund investing and is ready to make the purchase.What are his choices in buying?

Accepted Answer

A) Use a broker. 
B) Use a financial advisor. 
C) Buy direct. 
D) Buy through a mutual fund supermarket. 
E) All of the above 
A) Use a broker. 
B) Use a financial advisor. 
C) Buy direct. 
D) Buy through a mutual fund supermarket. 
E) All of the above

Question 7

One type of mutual fund does not endeavor to achieve the goals of a balance of bonds and stock or growth,income,and stability.Instead,it focuses on personal characteristics,such as age and risk tolerance,and your position in the financial life cycle.This is the

Accepted Answer

A) index fund. 
B) sector fund. 
C) growth and income fund. 
D) balanced fund. 
E) life cycle fund. 
A) index fund. 
B) sector fund. 
C) growth and income fund. 
D) balanced fund. 
E) life cycle fund.

Question 8

Money market mutual funds

Accepted Answer

A) are very risky investments. 
B) require significant investments,so are out of reach of the common investor. 
C) carry no loads. 
D) None of the above. 
E) Both A and B are correct. 
A) are very risky investments. 
B) require significant investments,so are out of reach of the common investor. 
C) carry no loads. 
D) None of the above. 
E) Both A and B are correct.

Question 9

Each individual mutual fund hires an investment advisor,generally from the management company,who oversee the particular fund.How is this advisor paid?

Accepted Answer

A) Hourly 
B) Based on a percentage of the commissions charged on an annual basis 
C) Based on a percentage of the total value of the fund on an annual basis 
D) Annually based on the capital gains realized by the fund 
E) None of the above 
A) Hourly 
B) Based on a percentage of the commissions charged on an annual basis 
C) Based on a percentage of the total value of the fund on an annual basis 
D) Annually based on the capital gains realized by the fund 
E) None of the above

Question 10

Which type of risk can an investor effectively manage by investing in broadly diversified mutual funds?

Accepted Answer

A) Serial risk 
B) Systematic risk 
C) Unsystematic risk 
D) None of the above is correct. 
A) Serial risk 
B) Systematic risk 
C) Unsystematic risk 
D) None of the above is correct.

Question 11

What are the advantages of index funds?

Accepted Answer

Index funds are set up to mimic or dupli

Question 12

What are the differences between an ETF and a mutual fund?

Accepted Answer

A) An ETF can be traded like a share of common stock. 
B) An ETF can be purchased on margin or sold short like a share of common stock. 
C) An ETF is more tax-efficient than most mutual funds. 
D) All of the above are correct. 
E) Only A and C are correct. 
A) An ETF can be traded like a share of common stock. 
B) An ETF can be purchased on margin or sold short like a share of common stock. 
C) An ETF is more tax-efficient than most mutual funds. 
D) All of the above are correct. 
E) Only A and C are correct.

Question 13

12b-1 fees are marketing expenses for the mutual fund that are passed on to the fund shareholders.

Accepted Answer

A) True 
 B)False

Question 14

Mutual funds give smaller investors the same ability to diversify and reduce risk as big investors with a great deal of money have.

Accepted Answer

A) True 
 B)False

Question 15

An ________ is a fixed pool of securities,generally municipal bonds.

Accepted Answer

A) earning trust 
B) unit investment trust 
C) equity corporation 
D) asset diversification company 
E) none of the above 
A) earning trust 
B) unit investment trust 
C) equity corporation 
D) asset diversification company 
E) none of the above

Question 16

Which of the following funds would be the most appropriate investment for the average small investor?

Accepted Answer

A) No-load open-end fund 
B) No-load closed-end fund 
C) Front-end load fund 
D) Back-end load fund 
A) No-load open-end fund 
B) No-load closed-end fund 
C) Front-end load fund 
D) Back-end load fund

Question 17

Mutual funds sold by a bank are insured by the federal government.

Accepted Answer

A) True 
 B)False

Question 18

What are the four choices for purchasing a mutual fund?

Accepted Answer

1.broker
2.financial

Question 19

Explain how a dividend reinvestment plan is similar to compounding and the time value of money.

Accepted Answer

With compounding,the interest you earned

Question 20

What is the dollar value held in ETF's today?

Accepted Answer

A) $500 billion 
B) $5 trillion 
C) $2.5 trillion 
D) $100 billion 
A) $500 billion 
B) $5 trillion 
C) $2.5 trillion 
D) $100 billion

Sometimes,when you purchase shares directly from the mutual fund company itself,there will not be a sales load.

Which of the following will affect your capital gains liability?

An equity REIT investment is limited to mortgages on income producing properties.

Which of the following mutual fund services is similar in concept to compounding and the time value of money?

Compare the investment vehicles and tax treatment of tax-exempt and government securities money market mutual funds.

Bernie has followed the three steps to begin mutual fund investing and is ready to make the purchase.What are his choices in buying?

One type of mutual fund does not endeavor to achieve the goals of a balance of bonds and stock or growth,income,and stability.Instead,it focuses on personal characteristics,such as age and risk tolerance,and your position in the financial life cycle.This is the

Money market mutual funds

Each individual mutual fund hires an investment advisor,generally from the management company,who oversee the particular fund.How is this advisor paid?

Which type of risk can an investor effectively manage by investing in broadly diversified mutual funds?

What are the advantages of index funds?

What are the differences between an ETF and a mutual fund?

12b-1 fees are marketing expenses for the mutual fund that are passed on to the fund shareholders.

Mutual funds give smaller investors the same ability to diversify and reduce risk as big investors with a great deal of money have.

An ________ is a fixed pool of securities,generally municipal bonds.

Which of the following funds would be the most appropriate investment for the average small investor?

Mutual funds sold by a bank are insured by the federal government.

What are the four choices for purchasing a mutual fund?

Explain how a dividend reinvestment plan is similar to compounding and the time value of money.

What is the dollar value held in ETF's today?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 14: Mutual Funds: an Easy Way to Diversify

Sometimes,when you purchase shares directly from the mutual fund company itself,there will not be a sales load.

Which of the following will affect your capital gains liability?

An equity REIT investment is limited to mortgages on income producing properties.

Which of the following mutual fund services is similar in concept to compounding and the time value of money?

Compare the investment vehicles and tax treatment of tax-exempt and government securities money market mutual funds.

Bernie has followed the three steps to begin mutual fund investing and is ready to make the purchase.What are his choices in buying?

One type of mutual fund does not endeavor to achieve the goals of a balance of bonds and stock or growth,income,and stability.Instead,it focuses on personal characteristics,such as age and risk tolerance,and your position in the financial life cycle.This is the

Money market mutual funds

Each individual mutual fund hires an investment advisor,generally from the management company,who oversee the particular fund.How is this advisor paid?

Which type of risk can an investor effectively manage by investing in broadly diversified mutual funds?

What are the advantages of index funds?

What are the differences between an ETF and a mutual fund?

12b-1 fees are marketing expenses for the mutual fund that are passed on to the fund shareholders.

Mutual funds give smaller investors the same ability to diversify and reduce risk as big investors with a great deal of money have.

An ________ is a fixed pool of securities,generally municipal bonds.

Which of the following funds would be the most appropriate investment for the average small investor?

Mutual funds sold by a bank are insured by the federal government.

What are the four choices for purchasing a mutual fund?

Explain how a dividend reinvestment plan is similar to compounding and the time value of money.

What is the dollar value held in ETF's today?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters