1.Mutual fund companies provide all but one of the following to their customers:
2.The key advantage of a family of mutual funds is
a.the ability to diversify an investment portfolio.
b.the ability to add funds on a regular basis such as with a 401K retirement plan.
c.the ability to shift quickly from one type of mutual funds to another with little or no cost and without rolling over 401K monies.
d.the ability to shift from one mutual fund management company to another.
3.Mutual fund management companies offering families of funds are attractive to pension- oriented investors because
a.they provide high return, low risk funds.
b.they provide an opportunity to alter the investment portfolio without the paperwork of rolling over the pension monies.
c.they provide significant "load" fees for customers.
d.they are not regulated like most mutual funds are.
4.Mutual fund _______ promote asset gathering by providing a variety of mutual funds for their investing clients.
5.Which one of the following services is not provided by closed-end investment companies?
a.transaction cost economies
d.shared costs of investment management
6.Which type of an investment company allows shareholders to cash in their shares at their present asset value?
a.unit investment trusts
b.open-end investment companies
c.closed-end investment companies
d.real estate investment trusts
e.none of the above
7.The commercial bankers' response to the growth of retirement-oriented mutual funds was to seek authority to
a.offer money market mutual funds.
b.market a complete variety of mutual funds.
c.enter investment banking.
d.sell insurance services.
8.Load mutual funds are sold at
a.the best price an underwriter can get.
b.their present asset value.
c.their present asset value less a discount.
d.none of the above
9.Mutual funds that do not charge a front-end load can still impose a _______ that must be paid by investors who redeem their shares.
b.contingent deferred sales charge
d.all of the above
e.none of the above
10. One may find the shares of which of the following traded on the national exchanges?
a.money market mutual fund
b.open-end investment company.
c.no-load mutual fund.
d.closed-end investment company.