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PF - 6.1 - 6.2

Authored by David Kubotsu

Financial Education

9th - 12th Grade

20 Questions

Used 12+ times

PF - 6.1 - 6.2
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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The individual assets contained in an actively managed mutual fund are selected by…

The pool of investors
The investor who owns the most shares of the fund
An automated computer program
A professional fund manager

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which is the best description of an index fund?

A mutual fund that tracks the performance of a specific market benchmark
A retirement fund for employees over age 50
An index made up exclusively of government bonds
A safe investment product that guarantees a high rate of return

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

One downside of active investing is that…

You must have a license, certification, or college degree to make these types of investments
You must buy and sell each day in order for it to work correctly
You are paying a fund manager who charges fees that will eat into your potential returns
You cannot diversify your portfolio using this strategy

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

All of the following are true about target date funds (TDFs), EXCEPT…

TDFs automatically reallocate your investments over time
TDFs are a good investment option for hands-off investors
TDFs track the performance of a particular market index
TDFs are invested in primarily in stocks when the target date is far in the future

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is an exchange traded fund (ETF) different from a mutual fund?

An ETF can be traded throughout the day and bought from other investors, like a stock
An ETF can only be bought at the end of the day from the fund provider
An ETF is usually actively traded and has higher expense ratios
An ETF is a pooled investment that uses funds from many different investors

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a robo-advisor?

A security algorithm used by some fund managers to protect your investments
An investment management service that uses a computer program to manage assets
A financial manager who provides specialized advice about technology funds
A popular type of exchange traded fund (ETF) with a low minimum investment

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

  1. The S&P 500 is…

  1. An actively managed mutual fund

  1. A diverse collection of stocks and bonds

  1. An index of the  500 largest publicly-traded companies in the world

  1. An index of the 500 largest publicly-traded companies in the US

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