Choose wisely. There is only one correct answer to each question.
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1.
When a mutual funds individual holdings make money, so do the mutual funds shareholders.
True. Earnings are passed from the holdings to the funds shareholders.
2.
Mutual funds will require a minimum purchase amount; however, that minimum can be waived.
True. Some mutual funds will waive the minimum required investment amount for a number of different reasons, such as setting up an automatic investment plan with them. Refer to the fund's prospectus for additional details on such waivers.
3.
The mutual fund advisor may play additional roles besides that of advisor.
True. It may also be the transfer agent.
4.
The holdings and sectors within a mutual fund always rise and fall together.
False. Due to the diversification of mutual fund holdings, some positions may be positive while others may not be.
5.
Which party hands out dividends to mutual fund investors?
The transfer agent. If you chose "distributor," remember that this party distributes shares, not dividends.