金融市场与机构Madura第九版题库ch23.doc

Chapter 23 Mutual Fund Operations 1. Which of the following statements is incorrect? A) Mutual funds serve as a key financial intermediary. B) Managers of mutual funds do not analyze economic and industry trends. C) Because of their diversification, management expertise, and liquidity, mutual funds have grown at a rapid pace. D) Some mutual funds offer check-writing privileges. ANSWER: B 2. Noload mutual funds are normally promoted by ______.? Load funds are promoted by ______. A) registered representatives of a brokerage firm; registered representatives of a brokerage firm B) registered representatives of a brokerage firm; the mutual fund of concern C) the mutual fund of concern; registered representatives of a brokerage firm D) the mutual fund of concern; the mutual fund of concern ANSWER: C 3. To cover managerial expenses, mutual funds typically charge A) management fees of 1 to 2 percent of total assets per year. B) commissions of typically 8 to 10 percent of transaction market value per year. C) management fees of typically more than 10 percent of total assets per year. D) commissions of typically 3 to 5 percent of the transaction market value per year. ANSWER: A 4. Mutual funds that are willing to repurchase their shares from investors at any time are referred to as A) closedend mutual funds. B) load mutual funds. C) no-load mutual funds. D) openend mutual funds. ANSWER: D 5. Mutual funds that do not repurchase their shares from investors are A) closedend mutual funds. B) load mutual funds. C) noload mutual funds. D) openend mutual funds. ANSWER: A 6. Most closed-end funds invest in A) stock and bonds. B) money market securities. C) gold. D) derivatives. ANSWER: A 7. Exchange-traded funds are like open-end funds in the sense that A) their shares are traded on an exchange, and their share price changes throughout the day. B) they have a fixed number of shares. C) they are not actively managed. D) none of the above A