G6 - English for Financial

What is a mutual fund?

• A company that manages investments for shareholders.

• A type of bank account.

• A government-sponsored retirement plan.

• An investment in a single company.

How many types of mutual funds are there?

• One type

• Two type

• Three type

• Four type

What are the two main categories of mutual funds?

• Open-end and closed-end funds 

  
  

• Growth and income funds

• Stock and bond funds

• Sector and international funds

How are open-end mutual fund shares priced?

• Based on the net asset value of the fund's portfolio.

• Based on supply and demand in the market.

• Based on the company's financial performance.

• Based on the investor's risk tolerance.

How are closed-end mutual fund shares priced?

• Based on the net asset value of the fund's portfolio

• Based on supply and demand in the market

• Based on the company's financial performance

• Based on the invesstor's risk tolerance

What are the three main categories of mutual fund investment objectives?

• Growth, stability and income

• Stock. bond and money market

• Sector, bond and money market

• Active, passive and quantitative

What is the difference between a growth fund and an income fund?

• Growth funds prioritize capital preservation, while income funds seek higher returns.

• Growth funds invest in riskier assets, while income funds invest in safer assets.

• Growth funds are managed by active managers, while income funds are managed by passive managers.

• Growth funds are suitable for long-term investors, while income funds are suitable for short-term investors.

What is a balanced fund?

• A fund that aims for a balance between growth and income.

• A fund that invests in a specific industry or region

• A fund that offers diversified exposure to global markets.

• A fund that tracks the performance of an index.

What is a sector fund?

• A fund that invests in a specific industry or region.

• A fund that aims for a balance between growth and income.

• A fund that offers diversified exposure to global markets.

• A fund that tracks the performance of an index.

What is an international fund?

• A fund that invests in companies from around the world.

• A fund that invests in a specific industry or region.

• A fund that aims for a balance between growth and income.

• A fund that tracks the performance of an index.