Series 65 Exam Quiz Mutual Funds 1

This is a Series 65 Exam Lesson 24 Quiz Mutual Funds pt. 1: a free quiz for Series 65 Exam Quiz Mutual Funds 1 which is covering mutual funds pt 1 . Try it and see how you do if you need help listen the lesson over.

Series 65 Exam Lesson 24 Quiz Mutual Funds pt. 1

Series 65 Exam Lesson 24 Quiz Mutual Funds pt. 1 covering more fundamentals of mutual funds you need to understand for the Series 65 Exam

Below are questions based on the lesson 24  of the series. Choose the letter of the correct answer.

Series 65 Exam Lesson 24 Quiz Mutual Funds pt. 1

1. Which of the following is an example of a mutual fund?

(Select all that apply.)

A. corporate bond fund

B. balanced fund

C. hedge fund

D. junk bond fund

2. Which of the following is an example of an income fund?

(Select all that apply.)

A. 12b-1 fund

B. bond income fund

C. government bond income fund

D. utility stock income fund

3. Which of the following is an example of an open-end fund?

(Select all that apply.)

A. 12b-1 fund

B. accumulated fund

C. fee-based mutual fund

D. no load fund

4. Which of the following is a requirement in putting up an investment management company?

(Select all that apply.)

A. custodian bank

B. financial lawyer

C. investment advisor

D. underwriter

5. It is anybody who has the ability to sponsor the mutual fund.

A. custodian bank

B. investment advisor

C. selling group

D. underwriter

6. It is the document which outlines everything that the client needs to know about the mutual fund.

A. Investment Company Act of 1940

B. investment management company indenture

C. mutual fund contract

D. prospectus

7. Which of the following is contained in the prospectus?

(Select all that apply.)

A. systematic withdrawal plan

B. the name of the investment advisor and the custodian bank and their respective fees

C. the type of mutual fund

D. whether the fund is a diversified fund or not

8. The objectives of the fund is already fixed in the prospectus and can never be changed until all the funds are withdrawn.

A. True

B. False

9. Buying a mutual fund is buying a bond.

A. True

B. False

10. Mutual funds are not traded.

A. True

B. False

11. Mutual funds allow the investor to switch within the family of funds with no sales charge.

A. True

B. False

12. In an open-end fund, there’s a one-time fee that the underwriter will get for selling the shares in that fund.

A. True

B. False

13. No load funds have no ___.

A. asking price

B. bid price

C. net asset value

D. sales charge

14. The maximum sales charge for loaded funds is ___.

A. 6 ¼ % of the net asset value

B. 6 ¼ % of the public offering price

C. 8 ½ % of the net asset value

D. 8 ½ % of the public offering price

15. If a loaded fund chooses to charge the maximum sales charge, it is also required to offer ___.

(Select all that apply.)

A. breakpoints

B. letter of intent

C. principal reinvestment

D. rights of accumulation

16. Which of the following is true about breakpoints?

(Select all that apply.)

A. It can be obtained by investment clubs.

B. It is calculated only for individual investors.

C. It is detailed in the prospectus.

D. There is an increasing sales charge as the dollar amount goes up.

17. The maximum length on the letter of intent is ___.

A. 12 months excluding 30 days backdating

B. 12 months including 30 days backdating

C. 13 months excluding the 90 days backdating

D. 13 months including the 90 days backdating

18. Which of the following is a characteristic of a diversified...