Question 11 Advantages of mutual funds include A professional management B all of these C liquidity D diversification Question 12 Which of the following types of investment companies operates much like an index fund A exchange traded fund B unit investment trust C closed end fund D REIT Question 13 A common stock fund that invests in only one industry is called a(n) fund A maximum capital gains B growth and income C index D sector Question 14 Mutual funds that charge a load do so to compensate A fund managers B brokers C shareholders D the SEC Question 15 Your first task in selecting a mutual fund is to A review your investment policy B locate sources of comparative performance data C eliminate funds inappropriate for your investment goals D screen and compare funds that meet your investment criteria Question 16 Taxes on annual earnings from mutual funds can be avoided A while those amounts are kept in an IRS qualified retirement account B as long as the mutual shares are not sold C while those amounts are kept in an IRS qualified retirement account and if those earnings are interest from municipal bonds D if those earnings are interest from municipal bonds Question 17 Mutual funds permit automatic income reinvestment of A ordinary income dividend distribution B none of these C both ordinary income dividend distributions and capital gains distributions D capital gains distribution Question 18 The type of mutual fund that is not actively managed is called a(n) fund A emerging market B money market C index D sector Question 19 A mutual fund that does not assess a sales charge at the time of the investment purchase is called a fund A back end load B front end load C low load D no load Question 20 Open end mutual funds A make up about 75 percent of all mutual funds B are sold only through brokers C are sold at their current net asset value D are sold to other investors on a secondary market

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Posted on Sep 20, 2024

Question 11

Advantages of mutual funds include

Question 12

Which of the following types of investment companies operates much like an index fund?

Question 13

A common stock fund that invests in only one industry is called a(n) ____ fund.

Question 14

Mutual funds that charge a load do so to compensate

Question 15

Your first task in selecting a mutual fund is to

	A.	review your investment policy.
	B.	locate sources of comparative performance data.
	C.	eliminate funds inappropriate for your investment goals.
	D.	screen and compare funds that meet your investment criteria.

Question 16

Taxes on annual earnings from mutual funds can be avoided

	A.	while those amounts are kept in an IRS-qualified retirement account.
	B.	as long as the mutual shares are not sold.
	C.	while those amounts are kept in an IRS-qualified retirement account and if those earnings are interest from municipal bonds.
	D.	if those earnings are interest from municipal bonds.

Question 17

Mutual funds permit automatic income reinvestment of

	A.	ordinary income dividend distribution.
	B.	none of these.
	C.	both ordinary income dividend distributions and capital gains distributions.
	D.	capital gains distribution.

Question 18

The type of mutual fund that is not actively managed is called a(n) ____ fund.

Question 19

A mutual fund that does not assess a sales charge at the time of the investment purchase is called a ____ fund.

Question 20

Open-end mutual funds

	A.	make up about 75 percent of all mutual funds.
	B.	are sold only through brokers.
	C.	are sold at their current net asset value.
	D.	are sold to other investors on a secondary market.