FCS 340 final | Questions with 100% Verified Answers |
Latest Update 2026/2027
Question: What is a closed-end mutual fund? an open-end mutual fund?
Answer: Closed: shares are issued when it is created, open shares can be made when
someone
wants one
Question: What is net asset value? How is the net asset value calculated?
Answer: Value of the mutual funds portfolio value of mutual funds in portfolio-liabilities /
number
of outstanding shares. Calculated at the close of each day
Question: What is a load fund? a no-load fund?
Answer: Load fund- you pay commission when you purchase it no load fund- a mutal fund
where
there is not a sales charge
Question: What is a contingent deferred sales load?
Answer: 1-5% fee is paid sometimes called a b fund you pay when you withdraw
Question: How much can you expect to pay in management fees for most mutual funds?
Answer: Usually .25-1.25% you will have to pay
Question: What is a 12b-1 fee?
Answer: fee for marketing or distributing a mutual fund
Question: What is expense ratio?
Answer: all the fees (desired 1% or less)
Question: Why do investors purchase mutual funds?
Answer: Professional management 2. Diversification
Question: Is there a significant difference between the performance of a load fund and a
no-load fund? Explain.
Answer: No. They can both do the same
Question: What do experts recommend investors look for in an expense ratio?
Answer: less than 1%
, Question: What is an equity income fund?
Answer: invest in stocks with a company that will pay dividends
Question: What type of mutual fund would you recommend for an elderly person who is
concerned about the safety of his or her investment?
Answer: intermediate U.S. bonds
Question: What is a growth fund?
Answer: one that invests in stocks that are growing rapidly
Question: What is an asset allocation fund?
Answer: one that focuses on diversification
Question: What are index funds? How do their performance compare to managed funds?
Answer: managed funds have a person managing it- index fund is based on numbers- the
indexed
funds out perform the managed funds 85% of the time
Question: How can an investor make money with mutual funds? What is a "family of funds"?
one investment company with a group of funds which you can move from one to
another without costing a lot of money
Answer: income dividends, buy and sell for a higher price, from capital gain distributions
Question: How can you get information about various mutual funds?
Answer: internet, mutual fund website, pay an advisory service
Question: What mutual fund earnings are considered taxable income?
Answer: income dividends, capital gain distributions and capital gains
Question: What is the most popular method of purchasing open-end mutual funds?
Answer: regular account transaction
Question: What are the misconceptions about retirement planning?
Answer: having enough money with social security alone, company pension will be enough,
not
many expenses or how long they need it
Question: What is a contractual savings plan? a voluntary savings plan?
Answer: making a contract with a company that you are going to invest by making regular
purchases over a period of time voluntary- decide how much and when
Latest Update 2026/2027
Question: What is a closed-end mutual fund? an open-end mutual fund?
Answer: Closed: shares are issued when it is created, open shares can be made when
someone
wants one
Question: What is net asset value? How is the net asset value calculated?
Answer: Value of the mutual funds portfolio value of mutual funds in portfolio-liabilities /
number
of outstanding shares. Calculated at the close of each day
Question: What is a load fund? a no-load fund?
Answer: Load fund- you pay commission when you purchase it no load fund- a mutal fund
where
there is not a sales charge
Question: What is a contingent deferred sales load?
Answer: 1-5% fee is paid sometimes called a b fund you pay when you withdraw
Question: How much can you expect to pay in management fees for most mutual funds?
Answer: Usually .25-1.25% you will have to pay
Question: What is a 12b-1 fee?
Answer: fee for marketing or distributing a mutual fund
Question: What is expense ratio?
Answer: all the fees (desired 1% or less)
Question: Why do investors purchase mutual funds?
Answer: Professional management 2. Diversification
Question: Is there a significant difference between the performance of a load fund and a
no-load fund? Explain.
Answer: No. They can both do the same
Question: What do experts recommend investors look for in an expense ratio?
Answer: less than 1%
, Question: What is an equity income fund?
Answer: invest in stocks with a company that will pay dividends
Question: What type of mutual fund would you recommend for an elderly person who is
concerned about the safety of his or her investment?
Answer: intermediate U.S. bonds
Question: What is a growth fund?
Answer: one that invests in stocks that are growing rapidly
Question: What is an asset allocation fund?
Answer: one that focuses on diversification
Question: What are index funds? How do their performance compare to managed funds?
Answer: managed funds have a person managing it- index fund is based on numbers- the
indexed
funds out perform the managed funds 85% of the time
Question: How can an investor make money with mutual funds? What is a "family of funds"?
one investment company with a group of funds which you can move from one to
another without costing a lot of money
Answer: income dividends, buy and sell for a higher price, from capital gain distributions
Question: How can you get information about various mutual funds?
Answer: internet, mutual fund website, pay an advisory service
Question: What mutual fund earnings are considered taxable income?
Answer: income dividends, capital gain distributions and capital gains
Question: What is the most popular method of purchasing open-end mutual funds?
Answer: regular account transaction
Question: What are the misconceptions about retirement planning?
Answer: having enough money with social security alone, company pension will be enough,
not
many expenses or how long they need it
Question: What is a contractual savings plan? a voluntary savings plan?
Answer: making a contract with a company that you are going to invest by making regular
purchases over a period of time voluntary- decide how much and when
