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1.
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.
2.
Stock mutual funds mostly buy _______ stocks.
Common. Common stocks provide the growth that stock funds seek.
3.
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.
4.
_______ invest in the debts of private companies.
Corporate bond funds. Corporate bonds are issued by private companies.
5.
If you buy mutual fund shares from another investor instead of from the fund itself, you are buying _______ shares.
Closed-end. Closed-end fund shares are traded between investors and cannot be bought from the fund itself, except when it sells shares for the very first time.
6.
Money market mutual funds invest in all but which of the following?
Stocks. Money market funds invest in debts, and stocks are not debts.
7.
Which of the following is not a type of mutual fund expense?
Ownership fee. There are no fees just for owning mutual funds.
8.
_______ are the earnings on a mutual fund's holdings that are distributed to shareholders.
Dividends. Dividends are shareholders' shares of earnings.