1. (TCOs 6 and 7) A(n) _____ fund is a mutual fund in which new shares are issued and redeemed by the investment company at the request of investors. (Points : 1)

open-end closed-end load no-load convertible

Question 2. 2. (TCOs 6 and 7) A(n) _____ mutual fund is one in which investors pay a commission every time they purchase shares. (Points : 1)

closed-end open-end no-load load convertible

Question 3. 3. (TCOs 6 and 7) Mary Cooper just purchased 200 shares in the All-American Fidelity Fund. The purchase cost for each share was $40. If this fund charges a 5% load, what is the total amount of commission she will pay the investment company? (Points : 1)

$10 $200 $40 $400 It is impossible to calculate Ms. Cooper's total investment with this information.

Question 4. 4. (TCOs 6 and 7) A(n) _____ fund is a mutual fund that invests in stocks issued by companies with a long history of paying dividends. (Points : 1)

balanced equity income industry sector money market

Question 5. 5. (TCOs 6 and 7) A(n) _____ fund is a mutual fund that invests in companies outside the United States. (Points : 1)

growth-income income international industry global market

Question 6. 6. (TCOs 6 and 7) The two real estate investment classifications consist of (Points : 1)

participating or nonparticipating. common or preferred. cumulative or noncumulative. direct or indirect. None of the above

Question 7. 7. (TCOs 6 and 7) Referring to historical trends, the after-tax cost of owning a vacation home in the United States has (Points : 1)

risen. remained unchanged. declined. declined, but only if you own stocks. declined, but only if you own tax-exempt bonds.

Question 8. 8. (TCOs 6 and 7) Which REIT pools money to finance construction loans? (Points : 1)

Mortgage REIT Compound REIT Hybrid REIT Simple REIT Equity REIT

Question 9. 9. (TCOs 6 and 7) You should invest in _____ if you want a risk-proof real estate investment. (Points : 1)

REITs real estate limited partnerships participation certificates (PCs) real estate syndicates Post Office buildings

Question 10. 10. (TCOs 6 and 7) Owen Cartwright has joined a real estate syndicate that purchased a commercial office building in downtown Seattle, WA. What type of investment does he hold? (Points : 1)

Direct investment in real estate Investment in gems Investment in precious metals Investment in collectibles Indirect investment in real estate

Question 11. 11. (TCOs 6 and 7) All of the following are misconceptions about retirement planning except for which? (Points : 1)

My expenses will drop when I retire. My retirement will last only 8 years. I can depend on Social Security income and Medicare for medical bill payment. I can depend on my company pension. My savings will still be affected by inflation.

Question 12. 12. (TCOs 6 and 7) Financial planning for retirement is vitally important for all of the following reasons except (Points : 1)

you can expect to live in retirement for many years. Social Security and private pensions may be insufficient to cover the cost of living. inflation may diminish the purchasing power of your retirement savings. you can expect that Social Security will be sufficient to live on.

Question 13. 13. (TCOs 6 and 7) A reverse mortgage annuity can only be obtained if (Points : 1)

you are at least 55 years old. you are 5 years from retirement. your mortgage is largely or completely paid off. you are recently retired.

Question 14. 14. (TCOs 6 and 7) As an individual approaches retirement age, he or she may consider (Points : 1)

increasing the face value of his or her life insurance. increasing his or her property insurance coverage. keeping his or her life insurance intact. decreasing the face value of his or her life insurance. exchanging his or her old life insurance policy with a new one.

Question 15. 15. (TCOs 6 and 7) As people grow older, which type of housing is designed to allow people to stay in their homes more easily? (Points : 1)

Accessory apartment ECHO unit Rooming house Universal design Professional companionship arrangement

Question 16. 16. (TCOs 6 and 7) Estate planning involves _____ if a person is married. (Points : 1)

the interest of at least two people fewer legal requirements fewer financial responsibilities seeking the services of a securities broker None of the above

Question 17. 17. (TCOs 6 and 7) _____ refers to what Gerald Wilkins has in his possession and owns, including a home worth $250,000, a car worth $15,000, various investments worth $600,000, and other personal assets worth $25,000. (Points : 1)

A trust A will An estate Probate None of the above

Question 18. 18. (TCOs 6 and 7) If you do not have a valid will when you die, (Points : 1)

the IRS confiscates your property. the federal court decides how the property should be distributed. your relatives or friends will get the property. your local custom will determine how the property is distributed. the state's law of descent and distribution becomes your will.