PF - Ch. 19 Review

A ___ fund is a mutual fund that purchases international stocks and bonds as well as U.S. securities.

• balanced

• income

• global

• international

A ___ fund is a mutual fund whose goal is to buy stocks that increase in value over time.

• global

• growth

• income

• balanced

A ___ fund is a mutual fund whose investment goal is to produce current income in the form of interest or dividends.

• balanced

• income

• global

• growth

The ___ is the sales fee charged for buying mutual funds.

• index

• net asset value

• load

• prospectus

The type of fund that is at the top of the Risk & Return Pyramid (which means it's high risk / high return potential) is

• growth & income fund

• income fund

• growth fund

• money market fund

A ___ fund is a mutual fund that invests in safe, liquid securities that mature in less than a year and are a safe investment.

• money market

• growth

• growth & income

• income

A ___ load is a sales charge paid as soon as you buy an investment.

• no

• back-end

• front-end

A ___ load is a sales charge paid when you sell an investment.

• front-end

• no

• back-end

A ___ load does not charge a sales fee when you buy OR sell because no salespeople are involved.

• front-end

• back-end

• no

A major advantage mutual funds have over stocks is

• there is not risk to mutual funds

• they provide diversification

• They earn you money VERY fast