Stage 5 Testing 2:True-False Statements
In this part of the test,you will read ten statements about the information presented in the lecture.First read the statement carefully.Then check your notes to decide whether the statement is true or false.If it is true,write a T in the blank space before the statement; if it is false,write an F in the blank.
1._______Individual investors join mutual funds because they cannot trade directly on the stock exchange.
2._______Scholars agreed that the form of mutual fund first appeared in the Netherlands.
3._______The mutual fund industry took off after Massachusetts Investors Trust was launched in 1924.
4._______Once a closed-end fund has successfully raised the fixed amount of capital in its IPO,it is not allowed to issue more shares even if there is a strong demand from investors.
5._______In order to maximize investors’ return on the capital,money market fund managers often engage in futures and options transactions.
6._______Bond funds are called fixed-income funds because they can offer investors regular fixed payments.
7._______In order of risk exposed to investors,municipal bond funds are riskier than index funds but safer than balanced funds.
8._______The investment strategy of value funds is to create a portfolio made up of 60% undervalued stock and 40% fixed income.
9._______Equity funds generally carry the investment objective of long-term capital growth with some income.
10._______Regional funds focus on emerging market economies only.