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1.
If a fee is charged on mutual fund shares that are sold, it is called a(n) _______.
Back-end load. These fees are charged on shares that you redeem back to the fund.
2.
Which of the following is not a method of buying mutual fund shares?
All of the above are valid methods. All the methods named are valid ways to buy mutual fund shares.
3.
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.
4.
The total return of a mutual fund includes dividends.
True. Total return includes both dividends and increases in share value.
5.
Stock mutual funds are oriented toward _______.
Growth. Because stocks have growth potential, stock funds include them.
6.
What are bonds sold by states called?
Municipal bonds. This is the accepted name for them. The term "government bonds" refers to bonds sold by the federal government.
7.
What do hybrid mutual funds strive to achieve?
A particular investment objective. Hybrid funds are defined by their objectives, and their names often reflect this. The other choices are only examples of hybrid funds.
8.
In what do money market funds invest?
Short-term debts. The money market is composed of short-term debts and nothing else.