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© 2014 Pearson Canada Inc.#
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
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
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
____ 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