Question 1

When screening mutual funds,two of the best websites are: Morningstar and Yahoo!Finance.

Accepted Answer

A) True 
 B)False

Question 2

When you own shares in a mutual fund,you directly own shares of the companies that make up the fund.

Accepted Answer

A) True 
 B)False

Question 3

In what ways do unit investment trusts and real estate investment trusts resemble mutual funds?

Accepted Answer

UITs are a pool of investments,generally

Question 4

A(n)________ is a mutual fund company that has the ability to issue as many shares as investors are willing to purchase.

Accepted Answer

A) closed-end mutual fund 
B) share repurchase fund 
C) open-end mutual fund 
D) variable share mutual fund 
E) none of the above 
A) closed-end mutual fund 
B) share repurchase fund 
C) open-end mutual fund 
D) variable share mutual fund 
E) none of the above

Question 5

Because mutual funds trade in such large quantities,they pay far more in terms of commissions.

Accepted Answer

A) True 
 B)False

Question 6

One of the most valuable mutual fund services available is automatic reinvestment of cash flows.

Accepted Answer

A) True 
 B)False

Question 7

What are the two broad types of risks that are associated with investing? Can you avoid them by investing in Mutual Funds?

Accepted Answer

The two broad types of risks associated

Question 8

Donel is investing in a mutual fund that really is not as diversified as other funds.It may enjoy good capital gains but is also much riskier when it comes to unsystematic risk.This fund is called a(n)________ fund.

Accepted Answer

A) growth-and-income 
B) sector 
C) life cycle 
D) asset allocation 
E) bond 
A) growth-and-income 
B) sector 
C) life cycle 
D) asset allocation 
E) bond

Question 9

Briefly explain the three ways to make money when you own shares in a mutual fund.

Accepted Answer

First,as the value of all the securities

Question 10

Explain how sales loads and fund expenses can negatively impact your return on investment in a mutual fund.

Accepted Answer

The sales load and fund expenses are sub

Question 11

Brian and Kallie are looking for investments that provide steady income to live on,moderate growth in capital,and moderate stability in their investments.They should look into balanced mutual funds.

Accepted Answer

A) True 
 B)False

Question 12

Shares in open-end mutual funds are actively traded in secondary markets.

Accepted Answer

A) True 
 B)False

Question 13

A bond mutual fund is an appropriate choice for an investor with an income goal.

Accepted Answer

A) True 
 B)False

Question 14

A unit investment trust is a fixed pool of securities,generally municipal bonds,with each unit representing a proportionate ownership in that pool.

Accepted Answer

A) True 
 B)False

Question 15

Tabitha is just beginning to develop her financial portfolio.She does not want to pay commissions to purchase shares in mutual funds,as her friend you would advise her to invest her dollars in ________ funds.

Accepted Answer

A) load 
B) front-load 
C) back-load 
D) no-load 
E) side-load 
A) load 
B) front-load 
C) back-load 
D) no-load 
E) side-load

Question 16

What are ETFs and what are their advantages?

Accepted Answer

An ETF is a hybrid type investment that

Question 17

Investment companies are required by law to offer a prospectus to prospective investors.Let your instructor know which 5 parts you think are the most important and why.

Accepted Answer

The fund's goal and investment strategy

Question 18

Which of the following funds protect you from systematic risk?

Accepted Answer

A) S&P 500 Index fund 
B) Growth fund 
C) Balanced fund 
D) All of the above 
E) None of the above 
A) S&P 500 Index fund 
B) Growth fund 
C) Balanced fund 
D) All of the above 
E) None of the above

Question 19

Provide a list of sources of information to evaluate mutual funds.

Accepted Answer

1.Morningstar Mutual Funds
2.T

Question 20

According to the Keown book,________ are by far the most popular funds,accounting for more than half of all mutual funds.

Accepted Answer

A) equity funds 
B) bond funds 
C) hybrid funds 
D) money market funds 
A) equity funds 
B) bond funds 
C) hybrid funds 
D) money market funds

When screening mutual funds,two of the best websites are: Morningstar and Yahoo!Finance.

When you own shares in a mutual fund,you directly own shares of the companies that make up the fund.

In what ways do unit investment trusts and real estate investment trusts resemble mutual funds?

A(n)________ is a mutual fund company that has the ability to issue as many shares as investors are willing to purchase.

Because mutual funds trade in such large quantities,they pay far more in terms of commissions.

One of the most valuable mutual fund services available is automatic reinvestment of cash flows.

What are the two broad types of risks that are associated with investing? Can you avoid them by investing in Mutual Funds?

Donel is investing in a mutual fund that really is not as diversified as other funds.It may enjoy good capital gains but is also much riskier when it comes to unsystematic risk.This fund is called a(n)________ fund.

Briefly explain the three ways to make money when you own shares in a mutual fund.

Explain how sales loads and fund expenses can negatively impact your return on investment in a mutual fund.

Brian and Kallie are looking for investments that provide steady income to live on,moderate growth in capital,and moderate stability in their investments.They should look into balanced mutual funds.

Shares in open-end mutual funds are actively traded in secondary markets.

A bond mutual fund is an appropriate choice for an investor with an income goal.

A unit investment trust is a fixed pool of securities,generally municipal bonds,with each unit representing a proportionate ownership in that pool.

Tabitha is just beginning to develop her financial portfolio.She does not want to pay commissions to purchase shares in mutual funds,as her friend you would advise her to invest her dollars in ________ funds.

What are ETFs and what are their advantages?

Investment companies are required by law to offer a prospectus to prospective investors.Let your instructor know which 5 parts you think are the most important and why.

Which of the following funds protect you from systematic risk?

Provide a list of sources of information to evaluate mutual funds.

According to the Keown book,________ are by far the most popular funds,accounting for more than half of all mutual funds.

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

When screening mutual funds,two of the best websites are: Morningstar and Yahoo!Finance.

When you own shares in a mutual fund,you directly own shares of the companies that make up the fund.

In what ways do unit investment trusts and real estate investment trusts resemble mutual funds?

A(n)________ is a mutual fund company that has the ability to issue as many shares as investors are willing to purchase.

Because mutual funds trade in such large quantities,they pay far more in terms of commissions.

One of the most valuable mutual fund services available is automatic reinvestment of cash flows.

What are the two broad types of risks that are associated with investing? Can you avoid them by investing in Mutual Funds?

Donel is investing in a mutual fund that really is not as diversified as other funds.It may enjoy good capital gains but is also much riskier when it comes to unsystematic risk.This fund is called a(n)________ fund.

Briefly explain the three ways to make money when you own shares in a mutual fund.

Explain how sales loads and fund expenses can negatively impact your return on investment in a mutual fund.

Brian and Kallie are looking for investments that provide steady income to live on,moderate growth in capital,and moderate stability in their investments.They should look into balanced mutual funds.

Shares in open-end mutual funds are actively traded in secondary markets.

A bond mutual fund is an appropriate choice for an investor with an income goal.

A unit investment trust is a fixed pool of securities,generally municipal bonds,with each unit representing a proportionate ownership in that pool.

Tabitha is just beginning to develop her financial portfolio.She does not want to pay commissions to purchase shares in mutual funds,as her friend you would advise her to invest her dollars in ________ funds.

What are ETFs and what are their advantages?

Investment companies are required by law to offer a prospectus to prospective investors.Let your instructor know which 5 parts you think are the most important and why.

Which of the following funds protect you from systematic risk?

Provide a list of sources of information to evaluate mutual funds.

According to the Keown book,________ are by far the most popular funds,accounting for more than half of all mutual funds.

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