19) A Money Market Fund pays interest to the holders of Fund shares by a) b) c) d) Paying interest quarterly Issuing additional shares so that the NAV is always $1.00 Paying interest monthly, on a 360 day basis The shares are purchased on a discounted basis reti 20) One primary difference between an Exchange Traded Fund (ETF) and a Mutual Fund is b) c) d) You can't buy puts and calls for an ETF You can buy one share of an ETF whereas you have a minimum investment in most Mutual Funds You can trade the ETF during the day whereas Mutual Funds are settled at the end of the trading day b) and c) 21) A leveraged Exchange Traded Fund (ETF) is designed to: a) Achieve half of the movement of the underlying index Magnify returns through the optimum use of leverage Achieve twice the movement of the underlying index Increase returns through selling options against ownership in the fund d) 22) You should prefer a 3% taxable bond to a 2.50% tax exempt bond if your marginal tax rate is 25% a) b) TRUE FALSE 23) The equivalent taxable yield for a 3.25% tax exempt bond is 4.643%, assuming a 30% marginal tax rate a) b) TRUE FALSE 24) If you are interested in purchasing a Put Option, you will pay the "Bid" price al b) TRUE FALSE 25) "Breaking the Buck" refers to losing value in a Money Market Fund investment due to currency fluctuations between the US Dollar and the Euro Market TRUE FALSE b)