Funds Beginner: Mutual Fund Expenses

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1.
Which of the following is not another name for a redemption fee?
Choose wisely. There is only one correct answer.
Front-end load. Front-end loads are charged when you buy shares, not when you redeem them.
2.
You may be assessed an exchange fee when you put your earned dividends back into your mutual fund.
Choose wisely. There is only one correct answer.
False. You may be charged a sales load on reinvested dividends, but not an exchange fee.
3.
Which of the following is not a cost covered by a mutual fund's 12b-1 fees?
Choose wisely. There is only one correct answer.
Management expenses. These are not covered by 12b-1 fees, but by their own fees.
4.
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.
5.
Front-end sales loads apply when you _______ mutual fund shares.
Choose wisely. There is only one correct answer.
Buy. Front-end loads, or sales charges, are charged when you buy mutual fund shares.