All Courses > Funds > 100
Funds 107: Mutual Fund Expenses

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 not another name for a redemption fee?
Choose wisely. There is only one correct answer.
Front-end load. Front-end loads are charged when you buy shares, not when you redeem them.
2.
Which class of mutual fund shares includes charges in addition to sales loads?
Choose wisely. There is only one correct answer.
Class C. In addition to a small front-end load, class C shares include other fees (such as marketing costs).
3.
A mutual fund may legally charge 12b-1 fees up to 1.25 percent of a mutual fund's assets.
Choose wisely. There is only one correct answer.
False. The legal limit is 1 percent per year.
4.
If you transfer money from mutual fund A into mutual fund B, you may be charged a(n) _______ fee.
Choose wisely. There is only one correct answer.
Exchange. Exchange fees cover the movement of money between funds.
5.
A 1.5% expense ratio is acceptable for which type of fund?
Choose wisely. There is only one correct answer.
A foreign-stock fund. You should expect to pay less for fund types with a narrow range of returns, such as bond or large-cap stock funds. Look for funds with expense ratios of 1% or less. The range of returns is wider for small-cap or foreign funds, so you should expect to pay more.