4.

Compared to yields on general purpose money funds, the yields on

taxexempt

money funds are

A.

about the same.

B.

5 to 10 percent lower.

C.

5 to 10 percent higher.

D.

20 to 30 percent lower.

6.

Tax laws allow investors to hold mutual funds in which of the following types of retirement plans?

I. ordinary IRAs

II. Roth IRAs

III.

401K

plans

IV. Keogh plans

A.

I and II only

B.

II, III and IV only

C.

I, II and IV only

D.

I, II, III and IV

8.

Returns on exchange traded funds may come from

I. capital gains.

II. dividends.

III. increases in the fund's premium.

IV. decreases in the fund's discount.

A.

I and II only

B.

III and IV only

C.

I, II and III only

D.

I, II, III and IV

9.

Which of the following statements is(are) correct concerning hedge funds?

I. They are highly regulated.

II. They hedge all positions to limit risks.

III. Management and other fees are extremely low compared to other types of funds.

IV. Access is limited to institutions and high net worth or high income individuals.

A.

IV only

B.

I, II and III only

C.

II and IV only

D.

I, II, III and, IV

13.

A

closedend

fund with an NAV of $10.25 and a market price of $8.20 is selling at a discount of 20%.

True

False