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.
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.
2.
Sales charges cover the ________ of mutual fund shares.
Choose wisely. There is only one correct answer.
Buying and selling. Sales charges are levied for both buying and selling shares.
3.
What is the name of the expense that compensates those who administer a mutual fund?
Choose wisely. There is only one correct answer.
Management fee. This fee pays for those who run funds.
4.
Redemption fees cover the _______ of mutual fund shares.
Choose wisely. There is only one correct answer.
Selling. Redemption fees are charged when you sell, or redeem, shares back to a fund.
5.
If a mutual fund does not charge a sales load, it may compensate its brokers through 12b-1 fees.
Choose wisely. There is only one correct answer.
True. Some people call 12b-1 fees hidden loads because they compensate brokers in this way.