the economics of money, banking, and financial markets

352 #

© 2014 Pearson Canada Inc.#

5. 
   

   Which of the following are the primary assets mutual fund companies?
   A) Securities
   B) Consumer loans
   C) Premiums from policies
   D) All of the above
   Answer: A
   Diff: 1 Type: MC Page Ref: 284
   Skill: Recall
   Objective List: 12.5 Examine the key aspects of mutual funds

   
   


6. 
   

   Shares in open-end funds are ____ while shares in closed-end funds are ____.
   A) redeemable; not redeemable
   B) not redeemable; redeemable
   C) front load; no-load
   D) no-load; front load
   Answer: A
   Diff: 1 Type: MC Page Ref: 284
   Skill: Recall
   Objective List: 12.5 Examine the key aspects of mutual funds

   
   


7. 
   

   Institutional funds can be a concern because they ____.
   A) have no clout with corporate boards
   B) control a large share of total financial assets
   C) lead to lower interest rates
   D) include individuals between 50 and 70
   Answer: B
   Diff: 1 Type: MC Page Ref: 284
   Skill: Recall
   Objective List: 12.5 Examine the key aspects of mutual funds

   
   


8. 
   

   ____ funds are state-owned investment funds that invest in foreign assets.
   A) Private pension
   B) Front load
   C) Sovereign wealth
   D) Foreign mutual
   Answer: C
   Diff: 1 Type: MC Page Ref: 284
   Skill: Recall
   Objective List: 12.5 Examine the key aspects of mutual funds