Filters
Question type
Study Flashcards

Which of the following is not included in the prospectus?


A) Redemption fee or back-end load
B) Expenses, including management fees
C) Expenses, including advertising and marketing fees
D) Advice on when to buy and sell

Correct Answer

verifed

verified

Segregated funds usually mature in 10 years and guarantee the principal to a maximum of 75 percent.

Correct Answer

verifed

verified

Advantages of investing in mutual funds include all of the following except


A) diversification of your investment.
B) professional management.
C) meeting specific investment goals.
D) eliminating risk of loss.

Correct Answer

verifed

verified

Which of the following is a pure stock mutual fund?


A) Asset allocation fund
B) Balanced growth and income
C) Mid-cap fund
D) Money market fund

Correct Answer

verifed

verified

An international stock mutual fund is one that owns shares in companies from the United States and other countries.

Correct Answer

verifed

verified

Bond funds have tax advantages over other kinds of mutual funds.

Correct Answer

verifed

verified

Hedge funds, which are not regulated by the Ontario Securities Commission, are available only to wealthy investors and are less risky than ordinary mutual funds.

Correct Answer

verifed

verified

Existing shares of closed-end mutual fund companies are purchased


A) from the investment company directly.
B) from the investment company through a broker.
C) from other investors in the stock market.
D) from a bank.

Correct Answer

verifed

verified

You own 600 units of a fund with a current NAV of $14.36. Your portion of the fund distributions is $718.00 of dividends , capital gains, and interest earnings. What will be your total units now?


A) 600 units
B) 605 units
C) 550 units
D) 650 units

Correct Answer

verifed

verified

D

The main difference between segregated funds and mutual funds is that


A) segregated funds are for sophisticated investors.
B) mutual funds offer a death benefit.
C) segregated funds trade on an exchange.
D) segregated funds offer a guarantee.

Correct Answer

verifed

verified

D

Global bond funds focus on bonds issued by non-Canadian firms.

Correct Answer

verifed

verified

An investor with a low risk profile should invest in a sector fund.

Correct Answer

verifed

verified

The possibility that the Bank of Canada may raise the prime rate is an example of


A) political risk.
B) exchange rate risk.
C) interest rate risk.
D) monetary risk.

Correct Answer

verifed

verified

There is no limit to the number of open-end mutual fund units a company can offer.

Correct Answer

verifed

verified

Which of the following bond mutual funds have both the highest default risk and interest rate risk?


A) Long-term AAA corporate bonds
B) Short-term T-bills
C) Short-term high-yield corporate bonds
D) High-yield long-term corporate bonds

Correct Answer

verifed

verified

One advantage that segregated funds have over mutual funds is


A) the beneficiary designation.
B) no loads.
C) lower MERs.
D) better returns.

Correct Answer

verifed

verified

Regarding load and no-load mutual funds,


A) load funds usually outperform no-load funds.
B) no-load funds have outperformed load funds on average.
C) the two types of funds perform about the same considering the fees.
D) load funds require a broker, whereas no-load funds must be purchased directly.

Correct Answer

verifed

verified

Which of the following equity mutual funds invests in a range of medium sized companies?


A) Dividend
B) Sector
C) Mid-Cap
D) Index

Correct Answer

verifed

verified

Which of the following characteristics is true of closed-end funds?


A) They are not regulated.
B) They repurchase units from investors.
C) They are bought and sold through a mutual fund dealer.
D) They may sell above or below NAV.

Correct Answer

verifed

verified

Index funds offer tax advantages because


A) they trade frequently, generating frequent capital gains.
B) they have limited trading and so generate less capital gains.
C) they have higher MERs which reduces taxable distributions.
D) they do not receive dividends or interest.

Correct Answer

verifed

verified

B

Showing 1 - 20 of 148

Related Exams

Exam 1

Overview of a Financial Plan

128 Questions

Exam 2

Tools for Financial Planning - Applying Time Value Concepts

81 Questions

Exam 3

Tools for Financial Planning - Planning With Personal Financial Statements

152 Questions

Exam 4

Tools for Financial Planning - Using Tax Concepts for Planning

136 Questions

Exam 5

Banking Services and Managing Your Money

116 Questions

Exam 6

Managing Your Liquidity - Assessing, Managing, and Securing Your Credit

140 Questions

Exam 7

Personal Financing - Personal Loans

119 Questions

Exam 8

Personal Financing - Purchasing and Financing a Home

121 Questions

Exam 9

Protecting Your Wealth - Auto and Homeowners Insurance

125 Questions

Exam 10

Protecting Your Wealth - Health and Life Insurance

191 Questions

Exam 11

Personal Investing - Investing Fundamentals

140 Questions

Exam 12

Personal Investing - Investing in Stocks

130 Questions

Exam 13

Personal Investing - Investing in Bonds

131 Questions

Exam 15

Retirement and Estate Planning - Retirement Planning

135 Questions

Exam 16

Retirement and Estate Planning - Estate Planning

117 Questions

Exam 17

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

116 Questions

Show Answer