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Funds 108: Introduction to Mutual Fund Prospectuses

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1.
Which of the following is an operating expense in a mutual fund?
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12b-1 fee. Taxes are not operating expenses, and the other two are transaction fees.
2.
You can find information on how to contact a mutual fund by reading its introduction.
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True. The introduction includes an address and telephone numbers.
3.
A mutual fund prospectus does all of the following except _______.
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Make recommendations. Prospectuses are forbidden to advertise a fund.
4.
If you want to read about your options for mutual fund investment plans, you can find them in the shareholder manual.
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True. Investment plans are part of a shareholder's privileges.
5.
Which party hands out dividends to mutual fund investors?
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The transfer agent. If you chose "distributor," remember that this party distributes shares, not dividends.
6.
What does the section on the fund's objectives tell the investor?
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All of the above. The "Objectives" section includes strategies, philosophy, and objectives.