Chapter 13 Personal Finance Exam

A fund that invests only in a particular industry would be a _______ fund sector
The current market value of all the securities a mutual fund owns, less any liabilities, on a pershare basis is known as the fund’s: net asset value
Redeeming your mutual fund shares might result in a charge called the: back-end load
A(n) _____ sells fund shares either directly to the public or through certain authorized dealers. distributor
General-purpose money fund is: a money fund that invests in virtually any type of short-term investment vehicle
_____ funds are balanced funds that automatically change the asset allocation from more to less equity exposure as an investor ages. Life
The fund that is structured to match the performance of a certain market segment is known as a(n) _____ fund. index
Which of the following bond mutual funds invest in tax-exempt securities? municipal bond funds
Leverage means: using borrowed money to magnify returns
A(n) _____ is a service offered by mutual funds that helps an investor earn compound interest on their investments. automatic reinvestment plan
________ gives the property owner an allowance for the decline in the physical condition of real estate over time. Depreciation
A closed-end investment company that invests in various types of income-producing properties and mortgage loans is a: hybrid real estate investment trust
The actual ownership of a mutual fund is in the hands of the shareholders
______ funds are highly speculative and seek large profits from capital gains Aggressive growth
Which of the following real estate investment trusts (REITs) is the most attractive to income-oriented investors? Mortgage
Compared to mutual funds, exchange traded funds (ETFs): accommodate investors pursuing narrow market segments
A(n) ______ real estate investment trust (REIT) would invest in income-producing properties and mortgage loans. hybrid
Both load and no-load funds always charge a: management fee
A(n) _______ actually runs the portfolio and makes the buy and sell decisions investment advisor
In the online quotes from The Wall Street Journal’s listing of mutual funds, an “r” after the mutual fund name means that the particular mutual fund has a _____ associated with it. back-end load
Which of the following combines some of the operating characteristics of an open-end fund with some of the trading characteristics of a closed-end fund? exchange traded fund
An annual fee charged by some mutual funds to cover marketing and selling expenses is called the: 12b-1 fee
Which of the following is a reason to invest in mutual funds? mutual funds provide diversification of invested funds
Investment in real estate is attractive to investors because it permits a high degree of financial leverage
If you are a mutual fund investor who needs a steady income, you might take advantage of a fund’s: systematic withdrawal plans
Which of the following is true of real estate investments? Real estate investments lead to lower taxes due to tax shelter
Exchange traded mutual funds (ETFs): are traded throughout the day on stock exchanges
Exchange traded funds (ETFs) invest in narrow market segments

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