Question 1 A balanced fund that emphasizes growth in capital is called a(n) bond
ID: 2716514 • Letter: Q
Question
Question 1
A balanced fund that emphasizes growth in capital is called a(n)
bond and preferred stock fund.
diversified common stock fund.
equity-income fund.
money market fund.
growth and income fund.
Question 2
A fund that invests only in a particular industry would be a ____ fund.
money market
maximum capital
sector
balanced
bond
Question 3
A mutual fund allows investors to
Trade stocks on the NASDAQ
Instruct the purchase of specific securities
Become owners of a widely diversified portfolio of securities
Deduct unrealized losses from their taxes
All of these
Question 4
A mutual fund's NAV is its
normal average value.
nationally advertised value.
noted assessment vision.
net asset value.
none of these
Question 5
A no-load fund has no
sales charges.
administrative charges.
management charges.
tax charges.
12(b)-1 fees.
Question 6
Another name for a mutual fund is
a closed-end investment company.
an opened-end investment company.
a mutual investment company.
an open investment company.
a closed investment company
Question 7
Back end loaded mutual funds are most appropriate for
An investor with a short time horizon
An investor with a long time horizon
An investor who wants to purchase a no-load product
All investors
Back end loaded mutual funds are never appropriate
Question 8
Closed-end investment companies are characterized by
number of shares determined by demand.
price based on net asset value per share.
variable transaction costs.
availability for sale or purchase on security markets.
value dependent on quantity of shares held.
Question 9
Both load and no-load funds will always charge a
transaction fee.
12(b)-1 fee.
management fee.
fee on the sale of the shares.
redemption fee.
Question 10
If you are a mutual fund investor who needs steady income, you might take advantage of a fund's
retirement plans.
exchange privileges.
automatic reinvestment plans.
systematic withdrawal plans.
none of these.
Question 11
Investment company earnings come from
capital gains.
dividend from stocks.
interest from bonds.
interest and dividends.
interest, dividends, and capital gains.
Question 12
Index funds have provided competitive rates of return because
their costs are lower than other stock funds.
it is difficult to outperform the market.
they have very low turnover rates.
they are tax efficient.
all of these.
Question 13
Mutual funds do not offer
automatic reinvestment plans.
guaranteed performance.
regular income programs.
conversion privileges.
retirement plans
Question 14
Socially Responsible Funds typically avoid investing in
Environmentally sound companies
Alcohol and tobacco stocks
Car companies that do not promote safety
Fast food chains that sell meat
All of these
Question 15
The fund whose main objective is growth is known as a(n) ____ fund.
balanced
preferred stock
money market
index
none of these
Question 16
What type of REIT is most attractive to income oriented investors?
equity
mortgage
hybrid
unit trust
exchange-traded
Question 17
____ would not be a reason for purchasing mutual funds.
Diversification
Professional management
Tax advantage
Financial return
Convenience
Question 18
Which of the following bond mutual funds would provide tax-free income?
government bond fund
municipal bond fund
convertible bond fund
mortgage-backed bond fund
all of these
Question 19
Most mutual funds allow investors to participate in
Automatic reinvestment plans
Automatic investment plans
DRIP plans
a and b above
a and c above
Question 20
A(n) ____ sells fund shares, either directly to the public or through certain authorized dealers.
investment advisor
custodian
transfer agent
distributor
money manager
Attached are twenty questions. The multiple choice answers are underneath them. Please select the answer for each question.
bond and preferred stock fund.
diversified common stock fund.
equity-income fund.
money market fund.
growth and income fund.
Explanation / Answer
A balanced fund that emphasizes on growth in the capital is a growth and an income fund since it has the dual characteristic, one of the balance funds and another of the growth fund as well.
As an income fund it is balanced and diversified in nature and also provides the growth in capital hence a growth fund also.
Hence the correct option is option d.
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