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1.
To identify the securities in which a mutual fund invests, you can read its _______.
Prospectus. This is the only of the above choices that lists a money market fund's holdings.
2.
A mutual fund is a(n) _______.
Package of several types of securities. Although some mutual funds invest only in stocks or bonds, mutual funds as a whole are open to several types of securities.
3.
Stock mutual funds are oriented toward _______.
Growth. Because stocks have growth potential, stock funds include them.
4.
Mutual fund management expenses are covered by fees.
True. Management costs are included in the 12b-1 fees.
5.
Index mutual funds achieve their objectives by matching markets.
True. An index fund buys the securities of a given index so that it can stay abreast of "the market."
6.
_______ are the earnings on a mutual fund's holdings that are distributed to shareholders.
Dividends. Dividends are shareholders' shares of earnings.
7.
You can buy mutual fund shares directly from the mutual fund company.
True. You can buy shares directly. This is one of the popular features of mutual funds.
8.
_______ invest in the debts of private companies.
Corporate bond funds. Corporate bonds are issued by private companies.