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1.         A(n)________________ mutual fund invests funds in short-term securitieslike Treasury bills, jumbo CDs, and commercial paper.

A.     REIT
B.      hybrid fund
C.      closed-end investmentcompany
D.     equity mutual fund
E.      money market mutual fund

2.         A(n)__________________ has customer demand for the shares determiningthe number of shares outstanding.

A.     generalpartnership
B.      limited partnership
C.      open-end
D.     REIT
E.      closed-end

3.         A no-load mutualfund:

A.     has zerooperating expenses.
B.      is typically marketed directly tocustomers, charging no commission.
C.      is a type that no longerexists.
D.     does not invest in common stocks.
E.      has a zero or negative rate ofreturn in the most recent year.

4.         Fees considered“12b-1 fees” are:

A.     fees thatinvestment companies must pay to the SEC.
B.      fees charged by some mutual funds,due to distribution and marketing costs.
C.      up-front “load” fees, charged bysome mutual funds.
D.     back-end “load” fees, charged by somemutual funds.
E.      fees charged by mutual funds, tocompensate the portfolio manager.

5.         Verysmall MutualFund’s investment portfolio is comprised of the following: 1,000shares of General Mills (GIS, current price is $50 per share);3,000 shares of Bank of America Corp (BAC, current price is $30 pershare); and 2,500 shares of United Airlines Holdings (UAL), currentprice is $90 per share). Verysmall Mutual Fund has sold a total of15,000 of its own shares to customers. What is Verysmall MutualFund’s net asset value?

A.    $21.00
B.      $24.33
C.      $41.67
D.     $40.56
E.      $125.00