Help
Course Catalog > Portfolios > 400
Portfolios 404: Closed-End Funds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Which of the following is true of a closed-end fund but not of an open-ended mutual fund?
Choose wisely. There is only one correct answer.
Stable cash flow. Unlike mutual funds, no assets are flowing into or out of a closed-end fund.
2.
Closed-end funds can, if they wish, repurchase shares from investors.
Choose wisely. There is only one correct answer.
True. This is called a tender offer.
3.
When a discount begins to shrink, an investor is likely to lose money.
Choose wisely. There is only one correct answer.
False. An investor can make money if he or she bought it at discount and the discount shrinks.
4.
Placing a market order tells your broker to buy shares only at a specific price or better.
Choose wisely. There is only one correct answer.
False. A limit order tells your broker to buy shares only at a specific price or better.
5.
You can buy exchange-traded funds from a _______.
Choose wisely. There is only one correct answer.
Broker anytime during the trading day. Investors must buy and sell their shares through a broker on the open market any time during the trading day.
6.
When the demand for a closed-end fund share is less than its supply, the share sells at _______.
Choose wisely. There is only one correct answer.
A discount. The share will be discounted to make it more attractive on the market.
7.
_______ funds are the most common type of closed-end fund.
Choose wisely. There is only one correct answer.
Domestic bond funds. Domestic bond funds are currently the most popular type of closed-end fund.