Home > Funds > Intermediate
Funds Intermediate: Growth Mutual Funds

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.
The stocks that growth mutual funds invest in may not pay dividends.
Choose wisely. There is only one correct answer.
True. A corporation may reinvest its surplus earnings back into its stocks to expand the company rather than pay dividends.
2.
The Acme Internet Enterprise Fund, which is an up-and-coming Internet mutual fund, is likely to be a sector fund.
Choose wisely. There is only one correct answer.
True. According to its name, it invests in one area of the marketthe Internet.
3.
The performance of a growth mutual fund depends upon the _______ of the securities it contains.
Choose wisely. There is only one correct answer.
Performance. A fund is only as good as the investments it contains.
4.
Which of the following terms is not likely to be found in the name of a growth mutual fund?
Choose wisely. There is only one correct answer.
"Income." Growth funds do not pay enough income to warrant the use of a word like "income" in their names.
5.
Large-cap companies are popular choices for growth mutual funds.
Choose wisely. There is only one correct answer.
False. Although they may be included, they are not as frequently chosen as small-caps and mid-caps are. These latter companies generally have more room to grow than large-caps do.