Lesson 14-1 Review

Front

A professionally managed group of investments bought using a pool of money from many investors

Back

mutual fund

Answer explanation

Read page 301

Front

The market price for a share of a mutual fund

Back

net asset value

Answer explanation

Read page 304

Front

Profits made when the managers sell some of the fund’s securities for more than they paid for them

Back

capital gains

Answer explanation

Read page 302

Front

An average of the price movements of certain selected securities

Back

index

Answer explanation

Read page 304

Front

Fees expressed as a percentage of assets deducted each year for fund expenses

Back

expense ratio

Answer explanation

Read page 306

Front

The sales fee charged for buying mutual funds

Back

load

Answer explanation

Read page 305

Front

A mutual fund whose investment goal is to earn returns from both dividends and capital gains

Back

growth and income fund

Answer explanation

Read page 303

Front

A mutual fund whose investment goal is to produce current income in the form of interest or dividends

Back

income fund

Answer explanation

Read page 303

Front

A mutual fund whose investment goal is to buy stocks that will increase in value over time

Back

growth fund

Answer explanation

Read page 302

Front

A mutual fund that invests in safe, liquid securities, such as Treasury Bills and bonds that mature in less than a year

Back

money market fund

Answer explanation

Read page 303-304