Multiple Choice :

1. No-load mutual funds compensate investment managers by:

a. Charging a small fee for each purchase/sale.

b. Charging brokers a fee to sell the shares.

c. Charging a fee based on the value of the funds assets under the investment managers control.

d. Charging a 12b-1 fee

2. Which of the following are true of both hedge funds and mutual funds?

A: both are registered with the SEC

B: both borrow a significant amount of their investment capital

C: both usually concentrate their investments in a small niche in the securities markets

D: both are managed by professional fund managers

E: all of the above are true of both hedge funds and mutual funds

3. Where marking-to-market a futures contract occurs _____ margin calls occur _____.

A: weekly, daily

B: daily, weekly

D: weekly, weekly

D: daily, daily

E: none of the above

4. Which of the following events determined that pension monies are in fact part of an employees.

A: the passage of the Social Security Act of 1935

B: the Supreme Court ruling on the Inland Steel Case in 1949

C: the enactment of the Employment Retirement Income Security Act (ERISA) in 1974

D: the passage of the Keough act of 1962

E: the setup of the Pension Benefit Guarantee Corporation (PBGC)

5. One would find the shares of which of the following traded on a national exchange

A: a money market mutual fund

B: an open-ended investment company

C: a no-load mutual fund

D: a closed-end investment company