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WorksheetsMutual Fund / Bond Review
Total questions: 14
Worksheet time: 7mins
Name
Class
Date
1.
What is a large pool of money that several people put together, and that is usually invested in stocks and bonds and managed by a financial expert?
a)
Mutual fund
b)
Stock
c)
Bond
d)
Bitcoin
2.
How do mutual funds make money for their investors?
a)
Capital Appreciation and Dividends
b)
Dividends only
3.
If a bond is held to maturity, the investor will receive an amount stated on the bond known as the _______.
a)
ticket value
b)
face value
c)
maturation value
d)
printed value
4.
As an investor, if you wanted to diversify your retirement portfolio, which financial product should you select?
a)
Stock
b)
Mutual fund
c)
Bond
d)
Bitcoin
5.
Select the type of investment most suitable for preserving wealth.
a)
Aggressive Growth Mutual Fund (Primarily Stocks)
b)
Blended Mutual Fund
c)
Conservative Mutual Fund (Primarily AAA Rated Bonds)
d)
Individual Stocks
6.
The declared interest of the bond is called the ______ rate.
a)
bonded
b)
coupon
c)
agreed-upon
d)
declaration
7.
Which of the following is the LEAST risky investment?
a)
corporate bonds
b)
stocks
c)
U.S. Treasury bonds
d)
mutual funds
8.
A bond that pays all of its interest and principal at the bond’s maturity date is called a
a)
a zero-coupon bond
b)
a bond fund
c)
a coupon bond
d)
a par-value bond
9.
On the bond market, a bond trading at a HIGHER price than its par value is called a
a)
Discount bond
b)
Premium bond
c)
Low-cost bond
d)
Mark-up bond
10.
This bond would NOT be taxed by the federal government
a)
U.S. Treasury Bond
b)
Municipal Bonds
c)
Corporate Bonds
d)
Zero-coupon bond
11.
Which type of bond would be appropriate for the conservative investor?
a)
Junk bonds
b)
Investment grade bonds
c)
Bonds with a CCC rating
12.
Most mutual fund companies offer several different types of funds.
a)
True
b)
False
13.
A no-load fund charges a sales commission.
a)
True
b)
False
14.
What are the major risks for bond investors?
a)
Default
b)
Inflation
c)
Interest Rate Changes
d)
Inflation and Interest Rate Changes
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