Investments:

L2-C2: When selling open-ended mutual fund shares, investors: a. redeem them at maturity b. sell them to other investors, like shares of stock C. can cash them in at their local retail bank d. sell/redeem them to the investment company which issued them L2-C19: What would NOT be an example of a fee charged by a fund to incentivize the sale or distribution of a fund? a. 12b-1 fee b. management fee C. front-end load d. back-end load L1-C20: What is the major difference between municipal bonds and other types of bonds? Municipal bonds are always insured; other bonds are not a. b. Unlike other bonds, municipal bonds sell at a discount C. Municipal bond interest is tax-exempt; interest on other bonds is not d. There is no brokerage commission on municipal bonds unlike other bonds L1-C21: You are a financial advisor for a client evenly invested in both municipal and corporate bonds for the bond part of her portfolio. She expects to retire soon and her marginal tax rate will drop from 30% to 15%. She will not be increasing the overall share of bonds in her portfolio, and the muni's and corporates have similar risk. Separate from potential capital gains, you suggest she: a. invest in more municipal bonds relative to the corporate/taxable ones b. keep the share of municipal bonds in her portfolio about the same C. invest in more corporate/taxable bonds relative to the muni's L1-C22: The principal reason someone would invest in municipal bonds would be their low risk. a. TRUE b. FALSE