What is the primary focus of money market mutual funds according to the Canadian Investment Funds Standards Committee (CIFSC)?

Investing at least 95% of their total net assets in money market securities

Investing in long-term securities

Which of the following is NOT a characteristic of money market securities?

Short-term interest rate sensitivity

What is a risk associated with investing in money market funds?

Returns that do not keep pace with inflation

How does the value of money market securities typically respond to changes in interest rates?

It fluctuates with changes in short-term interest rates

What is the primary objective of money market funds?

Safety of principal and liquidity

What is a key difference between money market funds and traditional deposits?

Money market funds are not covered by deposit insurance

Money market funds are covered by deposit insurance

Money market funds have higher returns

Money market funds have lower liquidity

What type of data is typically found in mutual fund performance tables?

Performance data from inception

What is the formula for calculating the seven-day yield of a money market fund?

(Ending Net Asset Value / Initial Net Asset Value) - 1

(Initial Net Asset Value / Ending Net Asset Value) - 1

(Ending Net Asset Value / Initial Net Asset Value) + 1

(Initial Net Asset Value / Ending Net Asset Value) + 1

What assumption is made in the current yield calculation?

It considers only the return over the most recent seven-day period.

It assumes returns are compounded weekly.

It assumes returns are compounded annually.

It considers the return over the entire year.

What does the effective yield calculation assume about the returns?

Returns are reinvested weekly for one year.

Returns are reinvested monthly for one year.

Returns are reinvested annually.

What is the primary investment objective of the sample money market fund?

To conserve capital while maintaining liquidity and achieving a regular income

To invest solely in high-risk securities

To focus on international investments

Which bank's notes have a par value of $3,000,000 and a cost of $2,909,820 in the investment portfolio?

Canadian Imperial Bank of Commerce

What type of income do mortgage mutual funds earn?

Interest income and capital gains

How are open mortgages different from closed mortgages?

Open mortgages can be repaid anytime without penalty.

Open mortgages have a fixed interest rate.

Closed mortgages have no repayment penalties.

Closed mortgages can be renegotiated anytime.

What is a characteristic of conventional mortgages?

They exceed 80% of the appraised value.

What does computing a fund's net asset value per unit involve?

Determining the value of the portfolio as if selling today.

Determining the interest rate of the portfolio.

Calculating the total loan amount.

Estimating future interest rates.

What is the primary investment objective of mortgage funds?

To earn current income while preserving capital

To earn capital gains through high-risk investments

To invest in international markets

To focus solely on residential properties

Which type of properties can mortgage funds invest in according to the National Housing Act (NHA)?

Residential and commercial properties that are NHA insured

What is a key characteristic of mortgage funds in terms of risk?

Low default risk due to high diversification

High default risk due to limited diversification

High volatility due to short-term investments

Low volatility due to long-term investments

Why is interest rate sensitivity expected to be lower for mortgage funds than for bond funds?

Mortgages have less interest rate risk than bonds

Mortgages change rates more frequently than bonds

Mortgages have a longer average term than bonds

Mortgages are traded daily like bonds

What type of securities might a mortgage fund hold in addition to fixed-income securities?

Short-term debt instruments like T-bills

What are the two components that make up the returns on mortgage mutual funds?

Interest and real estate appreciation

What is the primary investment objective of the typical mortgage mutual fund described in the document?

To provide a high level of income and some capital growth by investing primarily in first mortgages

To achieve high capital growth by investing in stocks

To minimize risk by investing in government bonds

To maximize liquidity by holding cash reserves

Which of the following is a risk associated with mortgage funds as mentioned in the document?

High volatility compared to bond funds

High default risk due to lack of insurance

What is the significance of the 'amortized cost' column in the mortgage fund's portfolio?

It reflects the cost of mortgages when the market rate was different from their fixed rate

It shows the current market value of the mortgages

It indicates the total interest earned on the mortgages

It represents the total cash flow from the mortgages

Conservative Mutual Fund Products and Related Concepts

University

•

99 Qs

Similar activities

Grammar Quiz #1

KG - University

•

100 Qs

English Grammar Tests - Test 1 (Essential English)

5th Grade - University

•

100 Qs

G6S2 B1-4 Reading Quiz

6th Grade - University

•

100 Qs

UGC UNIT TEST-I

University

•

100 Qs

PUSBA Meeting 3: Yes No and WH Questions

University

•

100 Qs

English Quiz Part 1

University

•

100 Qs

FIRST CONDITIONAL

University

•

95 Qs

Review

University

•

100 Qs

Conservative Mutual Fund Products and Related Concepts

Quiz

•

English

•

University

•

Practice Problem

•

Hard

Ashish Jhamb

FREE Resource

Corporate bonds

Fixed-income funds

Create a free account and access millions of resources

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

By signing up, you agree to our Terms of Service & Privacy Policy

Already have an account?

Similar Resources on Wayground

100 questions

PGTRB TEST SERIES - 12

Quiz

•

University

100 questions

Grammar: Future Forms and Education Vocabulary

Quiz

•

12th Grade - University

100 questions

Unit 10

Quiz

•

University

100 questions

English Grammar Quiz (12 Areas)

Quiz

•

University

100 questions

Chap 10_ESP2

Quiz

•

University

100 questions

Basic English Test

Quiz

•

1st Grade - University

97 questions

Relative Pronoun

Quiz

•

10th Grade - University

100 questions

Vocabulary Prosedure Text

Quiz

•

9th Grade - University

Popular Resources on Wayground

10 questions

Honoring the Significance of Veterans Day

Interactive video

•

6th - 10th Grade

9 questions

FOREST Community of Caring

Lesson

•

1st - 5th Grade

10 questions

Exploring Veterans Day: Facts and Celebrations for Kids

Interactive video

•

6th - 10th Grade

19 questions

Veterans Day

Quiz

•

5th Grade

14 questions

General Technology Use Quiz

Quiz

•

8th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

15 questions

Circuits, Light Energy, and Forces

Quiz

•

5th Grade

19 questions

Thanksgiving Trivia

Quiz

•

6th Grade

Discover more resources for English

10 questions

Quotations vs. Italics

Quiz

•

University

21 questions

Contractions

Quiz

•

KG - University

10 questions

Possessive Nouns

Quiz

•

KG - University

Conservative Mutual Fund Products and Related Concepts

99 questions

What are the main types of conservative mutual fund products mentioned?

What is one of the learning objectives related to money market mutual funds?

Which concept is important for understanding the impact of interest rate risk on fixed-income securities?

What is the term for the risk associated with changes in interest rates affecting the value of investments?

Which type of mortgage allows the borrower to pay off the loan at any time without penalty?

What is the term used to describe the additional return expected from a bond over a risk-free rate?

Which type of fund primarily invests in short-term debt securities?

What is the term for the profit realized from the sale of securities or investments?

What is the primary focus of money market mutual funds according to the Canadian Investment Funds Standards Committee (CIFSC)?

Which of the following is NOT a characteristic of money market securities?

Create a free account and access millions of resources

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for English